QUESTION 7 The ROE is a __ratio which measures management efficiency in O profitability, effectiveness in moving the firm to insolvency profitability: minimizing the cost of debt O leverage; increasing the risk of insolvency O debt; inventory turnover QUESTION 8 On an Income Statement, Net Income is because O A. cash; accountants create it that way. B. not cash; the ROE is always increasing OC.cash; Net Income shows a cash balance. o D. not cash; some expenses may not be paid in cash O both B. and D