You are a banker reviewing a loan application from a local business. Which of the following ratios would you look at to get a quick measure of the business's ability to meet its long-term financial obligations?

A) Liquidity ratio
B) Return on assets
C) Debt ratio
D) Current ratio
E) Activity ratio

C

Business

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One of the two constraints in accounting is:

a. comparability. b. materiality. c. faithful representation. d. relevance

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The flexible budget will report ________ for the fixed costs.

A) $50,500 B) $49,500 Favorable C) $49,500 D) $1,000 Unfavorable

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