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For Each of the Ratios Listed Below, Indicate by the Appropriate

Question 88

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For each of the ratios listed below, indicate by the appropriate letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.

Premises:
Price-earnings ratio
Return on assets
Accounts receivable turnover
Earnings per share
Payout ratio
Working capital
Current ratio
Debt to assets ratio
Free cash flow
Inventory turnover
Responses:
Liquidity ratio
Profitability ratio
Solvency ratio

Correct Answer:

Price-earnings ratio
Return on assets
Accounts receivable turnover
Earnings per share
Payout ratio
Working capital
Current ratio
Debt to assets ratio
Free cash flow
Inventory turnover
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