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Match Each Ratio That Follows to Its Use (Items A-H)

Question 144

Multiple Choice

Match each ratio that follows to its use (items a-h) . Items may be used more than once.
-Current ratio


A) Assess the profitability of the assets
B) Assess how effectively assets are used
C) Indicate the ability to pay current liabilities
D) Indicate how much of the company is financed by debt and equity
E) Indicate instant debt-paying ability
F) Assess the profitability of the investment by common stockholders
G) Indicate future earnings prospects
H) Indicate the extent to which earnings are being distributed to common stockholders

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