Answer:
c. liquidity ratio
Explanation:
Liquidity means having cash or access to cash readily available to meet obligations to make payments.
For the purpose of ratio analysis, liquidity is measured on the assumption that the only sources of
cash available are:
Cash in hand or in the bank, plus
Current assets that will soon be converted into cash during the normal cycle of trade.
It is also assumed that the only immediate payment obligations faced by the entity are its current liabilities.
There are two ratios for measuring liquidity:
Current ratio
Quick ratio, also called the acid test ratio.
Based on the above discussion, the answer is c. liquidity ratio
Answer:
c. Erie s ROE will remain the same
Explanation:
As the return on asset is calcualte using the asset figure it will not change with a financial leverage measurement.
As the financial leverage acts in the composition of other side of the accounting (assets = liabilitis + equity) it will change the return on equity, the debt ratio and other metric related to this side but, not the return on assets.
<span>⢀⢀⢀⢀⢀⢀⣠⣴⣾⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡿⣿⣄⢀⠠⡀
⢀⢀⢀⢀⣠⣶⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣟⣤⣙⣿⣿⣾⣷⣄
⢀⢀⢀⣴⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⡄
⢀⢀⠜⣿⠙⣹⡻⡿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡄
⢀⢀⣰⣿⢠⣿⣇⣶⣿⣿⣿⣿⣿⣿⣿⡟⢿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⢀⢀⢀⢀
⢰⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡇⢀⢀⠍⠙⢿⡟⢿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣄⣴⣾⠃
⣿⣿⣿⣿⣿⣿⣿⠹⣿⣿⣿⣿⣿⣿⣿⠁⠈⢀⡤⢲⣾⣗⠲⣿⣿⣿⣿⣿⣿⣟⠻⢿⣿⣿⡿⠃
⡿⣿⣿⣿⣿⣿⣿⡀⢙⣿⣿⣿⣿⣿⣿⢀⠰⠁⢰⣾⣿⣿⡇⢀⣿⣿⣿⣿⣿⣿⡄⠈⢿⣿⣿⣿⣦⣄⡀
⡇⢻⣿⣿⣿⣿⢿⣇⢀⢀⠙⠷⣍⠛⠛⢀⢀⢀⢀⠙⠋⠉⢀⢀⢸⣿⣿⣿⣿⣿⣷⢀⡟⣿⣿⣿⣿⣿⣟⠦
⠰⢀⠻⣿⣿⣿⣧⡙⠆⢀⣀⠤⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢸⣿⣿⣿⣿⣿⣿⢿⣧⢸⢻⣿⣿⠿⢿⡆⠁⠠⠠
⢀⢀⢀⠈⢿⣿⣿⣷⣖⠋⠁⢀⢀⢀⢀⢀⢀⣀⣀⣄⢀⢀⢀⢀⢸⠏⣿⣿⣿⢿⣿⢸⣿⣆⢀⢻⣿⣆⢀⢀⢀⢀⢀⣀⡀
⢀⢀⢀⢀⠈⣿⣿⣿⣷⡀⢀⢀⢀⢀⢀⡒⠉⠉⢀⢀⢀⢀⢀⢀⢈⣴⣿⣿⡿⢀⡿⢀⢻⣿⣆⡈⣿⣿⠂⢀⢀⢀⢸⣿⢀⢀⢀⢀⢀
⢀⢀⢀⢀⢀⠘⣿⣿⣿⣷⣄⢀⢀⢀⢀⠐⠄⢀⢀⢀⠈⢀⣀⣴⣿⣿⣿⡿⠁⢀⣡⣶⣿⣿⣿⣿⣿⣯⣄⢀⢀⢀⢸⣿⢀⢀⢀⢀⠐⣠⣾
⢀⢀⢀⢀⢀⢀⢹⠻⣿⣿⣿⣿⣆⠢⣤⣄⢀⢀⣀⠠⢴⣾⣿⣿⡿⢋⠟⢡⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⣶⡄⣿⣿⢂⠐⢀⣤⡾⡟⠁
⢀⢀⢀⢀⢀⢀⠸⢀⠘⠿⣿⣿⣿⣦⣹⣿⣀⣀⣀⣀⠘⠛⠋⠁⡀⣄⣴⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡿⢀⣿⣿⣴⣾⣿⣭⣄⢀⢀
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠈⠛⣽⣿⣿⣿⣿⣿⣿⠁⢀⢀⢀⣡⣾⣿⣿⣿⡟⣹⣿⣿⣿⣿⣿⣿⣿⣿⣿⠏⢀⣼⣿⣿⣿⣿⣿⣿⣿⣿⣶
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢰⣿⣿⣿⣿⣿⣿⣿⣦⣤⣶⣿⡿⢛⢿⡇⠟⠰⣿⣿⣿⣿⣿⣿⣿⣿⣿⠁⢀⣼⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⣿⣿⣿⡿⢉⣭⢭⠏⣿⡿⢸⡏⣼⣿⢴⡇⢸⣿⣶⣿⣿⣿⣿⣿⣿⣿⠇⢀⢀⣿⣿⣿⣿⡿⢿⣿⣿⡿⠟⠁
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢰⣿⣿⣿⢃⣶⣶⡏⠸⠟⣱⣿⣧⣛⣣⢾⣿⣿⣿⣿⣿⣿⣿⣿⣿⡟⠈⢀⢀⡼⠉⠉⠉⠁⢀⢀⢀⢀⢀⢀⢀
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⣾⣿⣿⣿⣾⣿⣿⠟⢻⡿⡉⣷⣬⡛⣵⣿⣿⣿⣿⣿⣿⣿⣿⣿⡯⢀⢀⠴⠋
⢀⢀⢀⢀⢀⢀⢀⢀⢀⣸⣿⣿⣿⣿⣿⣿⡿⢰⠘⣰⣇⣿⣿⣰⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⠃
⢀⢀⢀⢀⢀⢀⢀⢀⢀⠘⢿⣿⣿⣿⣿⣿⡷⢺⣿⠟⣩⣭⣽⣇⠲⠶⣿⣿⣿⣿⣿⣿⣿⠃
⢀⢀⢀⢀⢀⢀⢀⢀⠐⢀⣾⣿⣿⣿⣿⠟⢐⡈⣿⣷⣶⠎⣹⡟⠟⣛⣸⣿⣿⣿⣿⣿⣿
⢀⢀⢀⢀⢀⢀⢀⠠⢀⣼⣿⣿⣿⣿⣯⣼⣿⣷⣿⣷⣶⣾⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿
⢀⢀⢀⢀⢀⢀⢀⠐⢸⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿
⢀⢀⢀⢀⢀⢀⢀⢀⠂⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡀
⢀⢀⢀⢀⢀⢀⢀⢀⠈⠼⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⡄
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠹⠉⢻⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣇
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠓⣀⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⣄
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠈⢿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⣄
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠄⡠⣹⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣷⣄
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢹⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣇
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⠟⠋⠉⠛⢦
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⡿⠛⠉⢀⢀⢀⢀⢀⢀⠁⡀
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢻⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⣿⢿⡿⠟⠁⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠐
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠈⠙⠻⠿⢿⣿⣿⣿⣿⣿⡿⣿⡟⣿⠹⣮⣿⠁⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠠
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠉⢀⠛⠳⢾⣷⣾⣿⣹⣿⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢧
⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢹⣿⣿⣇⢻⡀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⢀⠘⡆</span>
Answer:
B
Explanation:
moneys always good motivation