Solved

Match Each Type of Information with the Appropriate Statement by Placing

Question 83

Matching

Match each type of information with the appropriate statement by placing the appropriate letter in the space provided

Premises:
The uncertainty of the future profitability of a company
The ability of a company to use its financial resources to adapt to change.
The ability of a company to efficiently produce goods and services for customers.
Refers to how quickly a company can convert assets into cash.
A measure of overall company performance for equity shareholders.
Comes from a company's ability to raise new capital.
Caused by factors such as technological, political, and economic change.
Indicated by the productive capacity of long-lived assets.
Negatively related to risk.
Responses:
Liquidity
Operating capability
Risk
Return on investment
Financial Flexibility

Correct Answer:

The uncertainty of the future profitability of a company
The ability of a company to use its financial resources to adapt to change.
The ability of a company to efficiently produce goods and services for customers.
Refers to how quickly a company can convert assets into cash.
A measure of overall company performance for equity shareholders.
Comes from a company's ability to raise new capital.
Caused by factors such as technological, political, and economic change.
Indicated by the productive capacity of long-lived assets.
Negatively related to risk.
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