Explore BrainMass

Explore BrainMass

    Financial Ratios- Multiple Choice Question

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Management's use of resources can best be evaluated by focusing on measures of:
    A. Liquidity
    B. Activity
    C. Leverage
    D. Book Value

    © BrainMass Inc. brainmass.com March 4, 2021, 6:00 pm ad1c9bdddf

    Solution Preview

    Answer: B. Activity

    Leverage ratios show how deeply the company is in debt. Overall the leverage or solvency ratios indicate the relative size of the claims of long-term creditors, compared to the claims or property rights of owners. Hence the leverage ratios indicate the method of ...

    Solution Summary

    The solution answers and explains a multiple choice question on financial ratios.