Which of the following ratios is not considered to be a test of profitability? a
ID: 2498763 • Letter: W
Question
Which of the following ratios is not considered to be a test of profitability?
a)Current ratio
Profit margin
Return on assets
d) Earnings per share
---------------------------------------
Which of the following is the best description of investments in trading securities?
Investments in bonds that management intends to hold to maturity.
Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
Investments in more than fifty percent of the voting stock of another company.
d)Investments that provides the investor significant influence over the investee, but not control over the investee.
----------------------------------------------------------------------------------------------------------------------
Which of the following is the best description of investments in available-for-sale securities?
a)Investments in bonds that management intends to hold to maturity.
Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
Investments in more than fifty percent of the voting stock of another company.
Investments in securities that are accounted for under the market value method other than trading securities and held-to-maturity investments.
a)Current ratio
b)Profit margin
c)Return on assets
d) Earnings per share
---------------------------------------
Which of the following is the best description of investments in trading securities?
a)Investments in bonds that management intends to hold to maturity.
b)Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
c)Investments in more than fifty percent of the voting stock of another company.
d)Investments that provides the investor significant influence over the investee, but not control over the investee.
----------------------------------------------------------------------------------------------------------------------
Which of the following is the best description of investments in available-for-sale securities?
a)Investments in bonds that management intends to hold to maturity.
b)Investments in stocks or bonds that are held primarily for the purpose of selling them in the near future.
c)Investments in more than fifty percent of the voting stock of another company.
d)Investments in securities that are accounted for under the market value method other than trading securities and held-to-maturity investments.
Explanation / Answer
Current ratio is a ratio hat is used to measure the liquidity of the company but not the profitability. therefore Current ratio is not considered to be a test of profitability.
Thus answer will be (a).
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.