Isare the things of value that a firm owns include

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87. __________ is/are the things of value that a firm owns, __________ include the firm's debts and obligations, and __________ is/are the difference between the assets and liabilities. a. Owner's equity, assets, liabilities b. Assets, liabilities, owner's equity c. Owner's equity, liabilities, assets d. Assets, owner's equity, liabilities e. Liabilities, assets, owner's equity ANS: B DIF: E OBJ: 8 NOT: Recall 88. A summary of an organization's financial performance over a given time interval, showing revenues, expenses, and bottom-line profit or loss is called a/an 89. Wendy Reedy, an accountant for International Apparel, spends a considerable amount of time looking at her company's __________, which is a summary of an organization's financial performance over a given time interval, showing revenues, expenses, and bottom-line profit or loss. 90. The __________ can indicate whether or not firms have trouble meeting their short-term debt obligations. 135
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91. Tom Young, an accountant for Premier Foods, is particularly concerned about his company's ability to handle its short-term debt. To properly analyze this situation, Tom should keep a close eye on his company's a. cash ratios. b. liquidity ratios. c. activity ratios. d. debt ratios. e. profitability ratios. ANS: B DIF: M OBJ: 8 NOT: Application 92. __________ is the difference between the assets and liabilities. It represents the company's net worth and consists of common stock and retained earnings. 93. __________ are indicators of the relative effectiveness, or profitability, of an organization. 94. The CEO of J.D. Edwards & Company spends a considerable amount of time studying indicators of the relative effectiveness of his organization. The most reliable financial ratios for studying the relative effectiveness of an organization are
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