For each of the ratios listed below, indicate by the appropriate code letter, whether it is a liquidity ratio, a profitability ratio, or a solvency ratio.
Code:
L = Liquidity ratio
P = Profitability ratio
S = Solvency ratio
____ 1. Price-earnings ratio
____ 2. Return on assets
____ 3. Accounts receivable turnover
____ 4. Earnings per share
____ 5. Payout ratio
____ 6. Working capital
____ 7. Current ratio
____ 8. Debt to assets ratio
____ 9. Free cash flow
____ 10. Inventory turnover
Correct Answer:
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P 2. Return ...
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