Question: Google is much more profitable than Amazon.com because its current ratio is nine times larger than Amazon's. Do you agree? Explain A. No. The current

"Google is much more profitable than Amazon.com because its current ratio is nine times larger than Amazon's." Do you agree? Explain

A. No. The current ratio does not give any information about liquidity. It measure profitability only.

B. No. The current ratio does not give any information about profitability. It is a measure of liquidity. Measures of profitability include the gross profit percentage, return on sales, and return on common stockholders' equity.

C. No. The current ratio does not give any information about profitability. It is a measure of liquidity. Measures of profitability include the sales revenues, accounts payable, and accounts receivable.

D. None of the above.

Step by Step Solution

3.44 Rating (163 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

Google is much more profitable than Amazoncom becau... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Document Format (1 attachment)

Word file Icon

1019-B-C-F-D-F(2508).docx

120 KBs Word File

Students Have Also Explored These Related Corporate Finance Questions!