BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Which of the following statements is true regarding the current ratio?-The current ratio is calculated as current assets divided by current liabilities.
Detailed explanation-2: -Answer and Explanation: The answer is D. Ratios help analyze the performance of a company and compare its performance with other firms within that industry.
Detailed explanation-3: -Answer and Explanation: A) It shows a company’s stock issuances and dividends paid to shareholders is true of the statement of stockholders’ equity.
Detailed explanation-4: -Ans:-True. Reason: Based on analysis of financial statement one can get idea of financial strength and weakness of the business. However, based on this one cannot take decision about the business on various issues.