The correct answer is: D. a-3, b-1, c-4, d-2
Acid test ratio is a liquidity ratio that measures a company’s ability to pay off its short-term obligations with its most liquid assets. It is calculated by dividing a company’s current assets minus inventory by its current liabilities.
Debt service coverage ratio is a financial ratio that measures a company’s ability to meet its debt obligations. It is calculated by dividing a company’s earnings before interest, taxes, depreciation, and amortization (EBITDA) by its annual interest expense.
Debt equity ratio is a financial ratio that measures the amount of debt a company has relative to its equity. It is calculated by dividing a company’s total debt by its total equity.
Stock turnover ratio is a measure of how efficiently a company sells its inventory. It is calculated by dividing a company’s cost of goods sold by its average inventory.
Profitability analysis is a financial analysis that measures a company’s ability to generate profits. It includes ratios such as return on assets (ROA), return on equity (ROE), and gross profit margin.
Activity analysis is a financial analysis that measures how efficiently a company uses its assets. It includes ratios such as asset turnover ratio, inventory turnover ratio, and receivables turnover ratio.
Long-term solvency analysis is a financial analysis that measures a company’s ability to meet its long-term obligations. It includes ratios such as debt to equity ratio, debt service coverage ratio, and interest coverage ratio.