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FM Questions

This document discusses five types of financial ratios. Liquidity ratios measure available cash, asset management ratios evaluate resource use, debt management ratios track reasonable debt levels, profitability ratios measure accounting profits, and market value ratios help evaluate security values for investment decisions.

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Ebsa Ademe
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51 views1 page

FM Questions

This document discusses five types of financial ratios. Liquidity ratios measure available cash, asset management ratios evaluate resource use, debt management ratios track reasonable debt levels, profitability ratios measure accounting profits, and market value ratios help evaluate security values for investment decisions.

Uploaded by

Ebsa Ademe
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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Say True or False

1. Liquidity ratios, that look at the availability of cash for operations.

2. Asset management ratios evaluate the efficient utilization of the resources.

3. Debt management ratios keep track of debt to be within reasonable bounds, and keep the debt level
at its optimal level.

4. Profitability ratios measure the degree of accounting profits.

5. Market value ratios help investors discriminate between overvalued and undervalued securities while
making investment decisions.

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