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For Each of the Ratios Listed Below, Indicate Whether It

Question 235

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For each of the ratios listed below, indicate whether it is a liquidity ratio (L), a profitability ratio (P), or a solvency ratio (S).

Premises:
Times interest earned
Asset turnover
Accounts receivable turnover
Debt to total assets ratio
Current ratio
Payout ratio
Responses:
liquidity ratio (L)
profitability ratio (P)
solvency ratio (S)

Correct Answer:

Times interest earned
Asset turnover
Accounts receivable turnover
Debt to total assets ratio
Current ratio
Payout ratio
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