Financial Ratios (Scenario) Jana Was in a Big Hurry. She Had Just Been

Multiple Choice

Financial Ratios (Scenario)
Jana was in a big hurry. She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president. Dania, the new vice president, had asked Jana to work up several calculations to help her gain an understanding of the company's financial shape. Jana was working hard and had a big order to fill, one that could make or break her reputation with Dania. She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked.
-Dania was also interested in understanding the company's ability to meet short-term obligations, which meant that Jana had to calculate a(n) ________ ratio.

A) leverage
B) liquidity
C) profitability
D) activity