A banker or trade creditor is most concerned about a firm's profitability ratios.
Correct Answer:
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Q1: Debt utilization ratios are used to evaluate
Q2: Return on equity will not change if
Q5: Satisfactory return on assets may be achieved
Q8: The current ratio is a more severe
Q10: Return on equity will be higher than
Q12: Asset utilization ratios describe how capital is
Q12: Profitability ratios allow one to measure the
Q17: Ratios are used to compare different firms
Q19: Financial ratios are used to weigh and
Q20: Ratios are only useful for those areas
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