Financial Ratio Analysis Quiz
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Questions and Answers

What is the purpose of financial ratio analysis?

  • To determine the market share of a company
  • To analyze the customer satisfaction of a company
  • To assess a company's financial performance and position (correct)
  • To calculate the total revenue of a company

    • Which financial ratio measures a company's ability to meet short-term obligations?

  • Current ratio (correct)
  • Asset turnover ratio
  • Debt-to-equity ratio
  • Return on investment ratio

    • What does a high debt-to-equity ratio indicate about a company?

  • Stable financial position
  • Low level of financial risk
  • Strong ability to generate profits
  • High level of financial leverage (correct)

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