Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

What do Net Income/Sales, EBITDA/Sales and COGS/Sales have in common? Question 1 options: a) All are Leverage ratios because each compare debt to cash flow

What do Net Income/Sales, EBITDA/Sales and COGS/Sales have in common? Question 1 options: 


a) All are Leverage ratios because each compare debt to cash flow to determine if the obligor is able to satisfy these obligations. 


b) All are Profitability ratios because they focus on Income Statement. 


c) All are Liquidity ratios because they indicate how easily a company can pay its obligations. 


d) All are Efficiency ratios because they include both balance sheet and income statement accounts in each ratio

Step by Step Solution

There are 3 Steps involved in it

Step: 1

The detailed answer for the above question is provided below The correct answer is b All are Profita... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Reporting Financial Statement Analysis And Valuation A Strategic Perspective

Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

8th Edition

1285190904, 978-1305176348, 1305176340, 978-1285190907

More Books

Students also viewed these Accounting questions

Question

And here is an access database....

Answered: 1 week ago

Question

What are the key elements of a system investigation report?

Answered: 1 week ago