Accounting · Ratio Analysis
Which of the following statements is false regarding financial analysis?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1The debt-equity ratio measures the short-term financial position and liquidity of a firm.✓
- 2Activity ratios are also referred to as turnover ratios.
- 3The ideal standard ratio between current assets and current liabilities is generally considered to be 2:1.
- 4Working capital is the excess of current assets over current liabilities.
Correct answer
The debt-equity ratio measures the short-term financial position and liquidity of a firm.
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