Which of the Following Ratios Increases When Inventory Is Sold

question 9

Multiple Choice

Which of the following ratios increases when inventory is sold on account for a price equal to its original cost?

• A)Current.
• B)Quick.
• C)Return on assets.
• D)Return on equity.

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Definitions:

Exclusion

The act of denying someone's access to a particular resource or activity.

Common Resource

A type of good that is non-excludable and rivalrous, such as fish stocks in the ocean; it is available to all but can be depleted by excessive use.

Public Good

A good that is both nonexcludable and nonrival in consumption.

Fire Protection

A range of measures and services designed to minimize the impact of fire on people, property, and the environment.