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1. Match the Financial ratio categories to their correct description or definition by placing the letter associated with the correct category in the Answer column.

1. Match the Financial ratio categories to their correct description or definition by placing the letter associated with the correct category in the Answer column.

Answer Ratio Ratio Category Letter
Measures whether the firm will be able to make interest and principal payments on its long-term debt. Liquidity
Liquidity
A
Measures the degree to which assets are used efficiently to generate revenues. Solvency B
Measures how highly the public values the firm. Asset Management C
Measures the likelyhood the firm will be able to pay its short-term obligations as they come due. Profitability D
Measures the firm's success at increasing revenues and managing costs. Market Value E

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