A Newly Acquired Microwave Oven and a Food Processor Will

question 49

Multiple Choice

A newly acquired microwave oven and a food processor will increase Chuck's productivity in the kitchen.Accordingly, he will

• A)cook more and eat out less
• B)cook less and eat out more
• C)buy more ready-to-eat foods
• D)be more likely to hire a cook
• E)increase the quality of what he cooks but may or may not cook more

---

Definitions:

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business, whichever is longer.

Short-Term Debt-Paying

Refers to a company's ability to meet its short-term financial liabilities and obligations.

Acid-Test

A stringent financial ratio that measures the ability of a company to pay off its current liabilities with its most liquid assets (cash, marketable securities, and accounts receivable).

Horizontal Analysis

A financial analysis technique used to evaluate trends over time by comparing line items in financial statements, such as assets, liabilities, and equity, across multiple periods.