Questions Auditors use a number of common ratios to assess the financial performance of a company.  These ratios fall into five broad categories: Profitability ratios: Asset management ratios: Liquidity ratios: Debt management ratios: Market value ratios

SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 1BD
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Auditors use a number of common ratios to assess the financial performance of a company.  These ratios fall into five broad categories:

  • Profitability ratios:
  • Asset management ratios:
  • Liquidity ratios:
  • Debt management ratios:
  • Market value ratios

Discuss the five broad categories listed above.

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