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Which one of the following best describes the Solvency class of ratio? a. Shows management's overall effectiveness as measured by returns on sales and investments

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Which one of the following best describes the Solvency class of ratio? a. Shows management's overall effectiveness as measured by returns on sales and investments b. Reveals the ability of a hospitality establishment to meet its short-term obligations C. Reflect management's ability to use the property's assets d. Measure the extent to which the enterprise has been financed by debt and is able to meet its long-term obligations Oe. Assist in the analysis of hospitality establishment operations QUESTION 39 Ratios are particularly useful for which of the following reasons a. Ratios indicate how well operational goals are being achieved. b. Ratios help indicate where a problem may be. O c. Ratios are used to communicate financial performance. Od. All of the above. e. None of the above. QUESTION 40 What are the limitation(s) of ratio analysis? a. They say that compared figures must be related b. One ratio cannot tell the whole story c. Ratios do not resolve problems or even indicate exactly what the problem is d. All of the above e. Only a. and b. aboe

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