List and define the five categories of ratios generally used in ...

[jrubin]

List and define the five categories of ratios generally used in financial statement analysis.
 
  What will be an ideal response?

Question 2

Companies furnish their employees with W-2 forms quarterly.
  Indicate whether the statement is true or false

[abro1885]

Answer to Question 1

The five categories of ratios are:(1) liquidity ratios, which measure a firm's ability to meet cash needs as they arise; (2) activity ratios, which measure the liquidity of specific assets and the efficiency of managing assets; (3) leverage ratios, which measure the extent of a firm's financing with debt relative to equity and its ability to cover interest and other fixed charges; (4) profitability ratios, which measure the overall performance of a firm and its efficiency in managing assets, liabilities, and equity; and (5) market ratios, which measure returns to stockholders and the value the marketplace puts on a company's stock.

Answer to Question 2

F

[jrubin]

Correct answers!

[abro1885]

Great! Please up vote