Which of the following items is not a category of commonly used financial ratios?
A)Tests of solvency and equity position.
B)Tests of timing.
C)Tests of liquidity.
D)Tests of profitability.

Question

Quizplus · Accepted Answer

The other three options are commonly used categories of financial ratios, with tests of solvency and equity position analyzing a company's ability to meet its long-term obligations and maintain equity, tests of liquidity analyzing its ability to meet its short-term obligations, and tests of profitability analyzing its ability to generate profits from its operations. Tests of timing is not a commonly used category of financial ratios.

Which of the Following Items Is Not a Category of Commonly