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51. A liquidity ratio measures the: a) operating success of a company over a period of time. b) ability of a company to survive over
51. A liquidity ratio measures the: a) operating success of a company over a period of time. b) ability of a company to survive over a long period of time. c) short-term ability of a company to pay its maturing obligations and to meet unexpected needs for cash. d) number of times interest is earned or "covered". 52. The current ratio is: a) calculated by dividing current liabilities by current assets. b) used to evaluate a company's liquidity and short-term debt-paying ability. c) used to evaluate a company's solvency and long-term debt-paying ability. d) calculated by subtracting current liabilities from current assets. 53. An increase in the inventory turnover indicates: a) the company is selling its inventory more frequently. b) the company's cost of goods sold has decreased. c) the company's average inventory has increased. d) the company's profitability has improved. 54. The debt to total assets ratio measures: a) the company's profitability. b) whether interest can be paid on debt in the current year. c) the proportion of interest paid relative to dividends paid. d) the percentage of the total assets financed by creditors. 55. Solvency ratios measure: a) a company's cash flow. b) a company's liquidity. c) a company's ability to survive over the long term. d) a company's general financial performance. 56. The asset turnover ratio measures: a) how often a company replaces its assets. b) how efficiently a company uses its assets to generate sales. c) the portion of the assets that have been financed by creditors. d) the overall rate of return on assets. 57. Earnings per share is calculated: a) only for common shares. b) only for preferred shares. c) for common and preferred shares. d) only for bonds
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