Which Is the Following Is Most Useful to a Company

question 80

Multiple Choice

Which is the following is most useful to a company?

• A)Knowledge
• B)Data
• C)Observations
• D)Information
• E)Decisions

Compute the rate of return on investment (ROI).

Calculate the acid test ratio.

Compute the ratio of accounts receivable to net sales.

Determine inventory levels and average inventory.

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Definitions:

Ten-Year Bond

A debt security with a maturity of ten years from the date of issue, which pays interest periodically.

Financing Activities

Transactions that involve raising capital, repaying investors, and adjusting the capital structure of a company, as reported in the cash flow statement.

Investing Activities

Transactions involving the purchase and sale of long-term assets and other investments, not including cash equivalents.

Investing Sections

Parts of a company's cash flow statement that show the amounts spent on investments in capital assets, like plant, property, and equipment or acquisitions.