Multiple Choice
Match the following types of ratios with their definitions.
-__ Common size
A) assess whether an organization is maintaining an adequate level of cash or near-cash assets.
B) assess how well an organization did financially.
C) compares numbers on the balance sheet to total assets and numbers on operating statement to revenues.
D) assess the organization's ability to meet its financial debt obligations (principal and interest) .
E) assess how well an organization manages its activities.
Correct Answer:
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