Latest Update - (Latest Update) Introduction to Business Finance |

D 775 / D775 Objective Assessment (Latest Update 2025 / 2026) Introduction to Business Finance | Questions & Answers | 100% Correct | Grade A - WGU

Question:

purpose of financial ratios

Answer:

assess financial health of firm forecast financial health of firm identify changes to improve financial health of firm

Question:

liquidity ratios

Answer:

company's ability to meet its short term financial obligations using liquid assets

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Question:

high liquidity ratio indicates...

Answer:

___ liquidity ratios indicate a strong ability to meet short term obligations using liquid assets

Question:

activity ratios (efficiency ratios)

Answer:

how efficiently a firm utilizes its assets to generate sales or revenue

Question:

low activity ratios (efficiency ratios) indicate...

Answer:

__ activity ratios (efficiency ratios) indicate ineffective at generating sales or revenue

Question:

leverage ratio

Answer:

extent to which a firm uses debt to finance its operations 2 / 4

Question:

high leverage ratios indicate...

Answer:

__ leverage ratios indicate greater financial risk and struggle to meet debt obligations

Question:

capital structure

Answer:

mix of debt and equity

Question:

profitability ratios

Answer:

ability to generate earnings relative to revenue, assets, or equity; indicative of ability to produce profits.

Question:

high profitability ratios indicate...

Answer:

__ profitability ratios indicate strong revenue-generating capabilities 3 / 4

Question:

market ratios

Answer:

financial performance in relation to a company's stock price

Question:

cross-sectional analysis

Answer:

comparing financial ratios of one company to the same financial ratios of another company

Question:

time-series analysis

Answer:

comparing financial ratios of a company over time

Question:

financial statements

Answer:

files or documents that provide a snapshot of a company's performance and operational efficiency

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