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Tourism & Hospitality Management QUESTION #1643
Question 1
The Accounting and Finance course covers five categories of financial ratio analysis. Which of the following correctly lists all five ratio categories covered in the curriculum?
  • Profitability, Liquidity, Efficiency, Leverage, and Growth ratios
  • Liquidity ratio, Activity ratio, Solvency ratio, Profitability ratio, and Cost Analysis✔️
  • Revenue ratio, Expense ratio, Profit ratio, Asset ratio, and Equity ratio
  • Current ratio, Quick ratio, Debt ratio, Return on equity, and Earnings per share
Correct Answer Explanation
Module 5 (Financial Analysis) of the Accounting and Finance course explicitly identifies five analytical frameworks: Liquidity Ratio (short-term solvency), Activity Ratio (asset utilization efficiency), Solvency Ratio (long-term debt capacity), Profitability Ratio (return generation), and Cost Analysis — alongside Vertical, Horizontal, and Ratio Analysis methods.