A Quick Ratio Much Smaller Than the Current Ratio Reflects

question 14

Multiple Choice

A quick ratio much smaller than the current ratio reflects:

• A) a small portion of current assets is in inventory.
• B) a large portion of current assets is in inventory.
• C) that the firm will have a high inventory turnover.
• D) that the firm will have a high return on assets.

Understanding and application of tax calculations for businesses.

Calculation and analysis of financial returns and taxes on investments.

Comprehension of GST and HST principles including remittance and refunds.

Mastery in solving problems involving rates and percentages in real-life contexts.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost.

Actual Hourly Rate

The real wage rate paid for an hour of labor, often compared against budgeted or standard rates for cost analysis.

Standard Hourly Rate

A predetermined amount paid or charged per hour, often used to calculate labor costs in manufacturing or services.

Labor Efficiency Variance

The difference between the actual hours taken to complete a task and the standard hours allowed for the actual output, multiplied by the standard hourly labor rate.