1. measure the ability of the company to generate income from the use of its assets and invested capital as well as control its cost. a. solvency ratio c. profitability ratio b. liquidity ratio d. acid-test ratio c. p 2. the following are financial records of abc c revenues - 20, 000 rent (pense-3,000 salaries expense - 4, 000 utilities pense - 2, 000 how much is the total expenses? a. p9,000 b. p10,000 d. p 1,0 3. is a book used to record journal entries called the book of original entry. a. income statement c. general journal b. balance sheet d. general ledger 4. is a book used to record account balances called the book of final entry. b. balance sheet a. income statement d. general ledger c. general journal