QUESTION 23 An entity's long-term debt capacity is indicated by ratios profitability debt liquidity none of the above QUESTION 29 A firm uses the process of Capital Budgeting because a. the process steps the business through how it should select the most wealth producing assets b. the business has limited funds c. the business wants to invest its funds in the most wealth producing assets Both b. and c. All of the above QUESTION 31 The Balance Sheet shows and a. how the firm makes money, it is included in the income Statement b. why there are assets; how Operating Expenses are controlled c. the firm's Capital Structure, it is on the right hand side of the Balance Sheet All of the above QUESTION 33 What is Insolvecy? a. The regular use of financial leverage. b. The inability to pay debts when they are due. c. An assessment of the short term financial strength of a firm, Both b. and All of the above