Which of the Following Statements Provides an Accurate Description of Financial

Multiple Choice

Which of the following statements provides an accurate description of financial ratios?

A) Liquidity ratios use information about current assets and current liabilities.
B) Asset management ratios focus on the relationship between profits and either average inventory or total assets.
C) Net margin and return on investment are useful leverage ratios.
D) Leverage ratios are helpful in assessing how well assets are employed in generating sales.
E) Inventory turnover is one method for determining the company's financial liquidity.