BUSINESS ADMINISTRATION
PRINCIPLES AND PRACTICE OF 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: -The leverage ratio category is important because companies rely on a mixture of equity and debt to finance their operations, and knowing the amount of debt held by a company is useful in evaluating whether it can pay off its debts as they come due.
Detailed explanation-2: -The income statement, balance sheet, and statement of cash flows are required financial statements. These three statements are informative tools that traders can use to analyze a company’s financial strength and provide a quick picture of a company’s financial health and underlying value.
Detailed explanation-3: -A cash budget is an estimate of the actual money receives and paid out for a specific period.
Detailed explanation-4: -A net loss occurs when a company’s expenses are higher than its total revenue. This can be a sign of problems that need to be addressed. It can, however, also happen because a company has a (relatively) short-term need for more income than it earns.