1. Which of the following ratios measures how profitably a company is using its resources?

1. Debt-to-assets ratio.
2. Debt-to-equity ratio.
3. Return on assets.
4. Inventory turnover ratio.

2. Common-size analysis

1. Presents financial statement items as a percentage of a base amount.
2. Converts financial statement items to a common currency.
3. Is useful only if the companies analyzed are of similar size.
4. May only be used for intercompany comparisons.

3. Which of the following ratios measures a companys liquidity?

1. Current ratio and quick ratio.
2. Current ratio and inventory turnover ratio.
3. Quick ratio and account receivable turnover ratio.
4. All of these.