Question

Which of the following ratios is not used in a typical financial statement approach? a)Liquidity ratios. b)Debt ratios. c)Financial security goals ratios. d)Social Security to savings ratios.

Answer 1

The ratio not used in a typical financial statement approach is d) Social Security to savings ratios. This ratio is more relevant to personal finance, whereas liquidity, debt, and profitability ratios are more commonly used to assess corporate financial health. Also, the incorrect option for the four pillars of food security is D. Transformation.

Step-by-step explanation:

The ratio that is not typically used in a financial statement approach is d) Social Security to savings ratios. Financial statement analysis usually involves examining liquidity ratios, debt ratios, and profitability ratios to assess the financial health and performance of a company. Liquidity ratios assess a company's ability to meet short-term obligations, debt ratios evaluate the level of a company's leverage, while profitability ratios measure its ability to generate profit. However, Social Security to savings ratios are more personal finance measures that individuals might use to assess their own retirement readiness, rather than ratios used in corporate financial statements.

Review Question Answer:

The one that is not one of the four pillars of food security is D. Transformation. The four pillars of food security are Availability, Access, Utilization, and Stability. These pillars are essential to ensure that people have regular access to enough high-quality food to lead active, healthy lives.

Answer 2

The ratio not used in a typical financial statement analysis is 'd) Social Security to savings ratios'. Instead, liquidity and debt ratios are standard, while financial security goals ratios are more personal and not typical for corporate analysis.

Step-by-step explanation:

The ratio that is not typically used in a standard financial statement analysis is d) Social Security to savings ratios. Financial statement analysis typically includes ratios that assess various aspects of a company's financial health. These commonly include:

• Liquidity ratios, which measure a company's ability to meet its short-term obligations.
• Debt ratios, which assess a company's leverage and its ability to service long-term debt.
• Financial security goals ratios, although less common and more personal in nature, might be considered in individual financial planning rather than corporate financial statements.

However, the Social Security to savings ratio is not a standard measure used in financial statement analysis. This ratio might be relevant for personal financial planning where an individual assesses their retirement readiness, comparing expected Social Security benefits with their savings. But in corporate finance, it does not apply.