Episode 30: Finance Ratios | Practice Questions | Halal Burgers

This week, Zak helps you learn the finance ratios of the RD Exam. Listen in and get up to par on your foodservice management concepts!

1. Which of the following would display a business that has relatively low debts? 

A. Asset Liability Ratio of 1:4 

B. Debt to Equity Ratio of 1:4 

C. Debt to Equity Ratio of 4:1

D. Inventory Turnover Rate of 3

2. The ability for a business to meet short-term obligations is known as the: 

A. Profitability Ratio 

B. Solvency Ratio 

C. Liquidity Ratio

D. Activity Ratio 

3. A business manager is exploring the ability of the business to generate profit in relation to sales or asset investments. This would be best be found in the: 

A. Profitability Ratio 

B. Solvency Ratio 

C. Liquidity Ratio

D. Activity Ratio

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