The current ratio is one of the most utilized measures of profitability. True False
The current ratio is one of the most utilized measures of profitability.
| True |
| False |
Homework Answers
Answer:
False
Explanation to the answer:
The current ratio is one of the most utilized measures of liquidity and not profitability. The current ratio is used to check company's ability to pay short-term debt
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The current ratio is one of the most utilized measures of profitability. True False
The TIE ratio measures the firm’s profitability. True or False ?
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True or False: One problem associated with using accounting measures to evaluate divisional performance is the measures are based on historical information. True or False: The use of residual income reduces, but does not eliminate, the suboptimization problem. True or False: A problem with ratio-based measures is that managers can make decisions that improve divisional income but lower organizational performance. True or False: Treating research and development costs as an expense rather than a long-term asset may reduce a manager's...
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True or False 1. Asset turnover measures a company's profitability. 2. NOPAT is equivalent to income from operating activities. 3. If Company A is more profitable than Company B, then Company A will have a higher RNOA than Company B. 4. Ratios provide one way to compare companies in the same industry regardless of their size. 5. Highly leveraged firms have higher ROE than lower leveraged firms. 6. All things equal, the higher a company's inventory turnover rate, the better....
Which one of the following is FALSE? Ordinal measures have the properties of interval measures Interval measures have the properties of nominal measures Ratio measures have the properties of ordinal measures Ordinal measures have the properties of nominal measures All are true
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