What is the current ratio? Question 5 options: Ratios that measure the degree and effect of a firm's use of borrowed funds (debt) to finance its operations. The allocation of an asset's original cost to the years in which it is expected to produce revenues. The ratio of total current assets to total current liabilities; used to measure a firm's liquidity. Ratios that measure a firm's ability to pay its short-term debts as they come due. Question 6 (2 points) What are the profitability ratios? Question 6 options: The ratio of total current assets to total current liabilities; used to measure a firm's liquidity. Ratios that measure a firm's ability to pay its short-term debts as they come due. Ratios that measure a firm's ability to pay its short-term debts as they come due. Ratios that measure how well a firm is using its resources to generate profit and how efficiently it is being managed. Question 7 (2 points) What are retained earnings? Question 7 options: The calculation and interpretation of financial ratios using data taken from the firm's financial statements in order to assess its condition and performance. The amounts left over from profitable operations since the firm's beginning; equal to total profits minus all dividends paid to stockholders. The ratio of net profit to total owners' equity; measures the return that owners receive on their investment in the firm. The dollar amount of a firm's sales plus any other income it received from sources such