Asked by
antonie rendon
on Nov 13, 2024Verified
The ratio of fixed assets to long-term liabilities provides a measure of a firm's ability to pay dividends.
Fixed Assets
Long-term tangible assets, such as buildings, machinery, and equipment, used in the operations of a business and not expected to be consumed or converted into cash within a year.
Long-term Liabilities
Obligations of a company that are due beyond the current fiscal year or operating cycle.
- Recognize the critical role that financial ratios play in determining a company's liquidity, profitability, and solvency.
Verified Answer
DS
Learning Objectives
- Recognize the critical role that financial ratios play in determining a company's liquidity, profitability, and solvency.