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Financial Ratios Jan Was in a Big Hurry

Question 104

Multiple Choice

Financial Ratios Jan was in a big hurry.She had just been given the assignment of reporting on the financial health of her company to the new divisional vice president.Donna, the new vice president, had asked Jan to work up several calculations to help her gain an understanding of the company's financial shape.Jan was working hard and had a big order to fill, one that could make or break her reputation with Donna.She quickly pulled out her old financial management textbook and turned to the chapter on financial ratios to help her answer the questions that were asked.
-Refer to Financial Ratios (Scenario) .Donna was also interested in understanding the company's ability to meet short-term obligations, which meant that Jan had to calculate a(n) ________ ratio.


A) leverage
B) activity
C) profitability
D) liquidity
E) financial

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