alleryStart learning →How a company uses and manages its assets is described as one key element of:
AEmployee morale
BFinancial health
CLegal compliance
DMarketing reach
Answer & Solution
Correct answer: B. Financial health
1. Efficiency is framed as part of a bigger picture.
2. Efficiency ratios show how well a company uses and manages its assets.
3. That management is one key element.
4. It is one key element of financial health.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
Keep practising Financial Ratio Analysis
Browse all Financial Ratio Analysis questions for US CMA Part 2, or explore more Finance topics.
Related questions
Match each ratio familySet the current ratioJudge the assertion and the reasonSort the ratio familiesBuild the working capital figureComparing a firm's ratios against rivals in the same sector uses which stated purpose of rA current ratio below one means current liabilities exceed:Inventory turnover and days' sales in inventory both belong to which ratio family?