Question
1. Company A has the same amount of total assets as Company B, however Company A annually generates double the amount of sales revenue as
1.
Company A has the same amount of total assets as Company B, however Company A annually generates double the amount of sales revenue as Company B. This illustrates what financial characteristic
a. Efficiency
b. Liquidity
c. Solvency
d. Profitability
2.
Company A has a profit margin of 1% while Company B's is 5%. Could Company A be a better investment than B?
Group of answer choices
a. yes, if A's assets or equity are lower than B's
b. no, company B is a better investment
c. yes, if A's current ratio is better than B's
d. yes, if A's quick ratio is better than B's
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