Question $36$

The primary purpose of the liquidity ratios is to determine:

A$.$ how much working capital is tied up in inventory.

B$.$ the relative level of short$-$term debt.

C$-$how well a firm is able to pay off short term obligations

Question $38$

The major device for measuring the profitability of a firm over a defined period of time is the:

A$.$ income statement

$B*$ Balance sheet.

C$.$ statement of cash flows.

D$.$None of the above

QUESTION $40$ ratios measure the ability of a firm to earn an adequate return on sales, total assets, and invested capital.

A$.$ asset utilization

B$*$liquidity

C$.$profitability

D$.$debt utilization

E$*$price

QUESTION $41$ You would expect to find depreciation and amortized expenses in the statement of cash flows under:

A$.$ cash flows from operating activities.

B$.$ cash flows from investing activities.

C$.$ cash flows from financing activities.

D$.$ cash flows from purchasing activities.