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1.What does the gearing (or leverage) ratio measure? A Profitability B Solvency C Asset management D Liquidity 2. The Income Statement shows the financial ____________

1.What does the gearing (or leverage) ratio measure?

A Profitability

B Solvency

C Asset management

D Liquidity

2.

The Income Statement shows the financial ____________ of the company; and the Balance Sheet shows the financial ____________ of a company.

A Performance : Position

B Performance : Cash-flow

C Position : Performance

D Cash-flow : Position

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