If Management Wishes to Evaluate How Effectively the Assets of a Business

question 83

Multiple Choice

If management wishes to evaluate how effectively the assets of a business are being used, they could use the:

• A) asset turnover ratio.
• B) rate of return on common stockholders' equity.
• C) acid test ratio.
• D) debt to total stockholders' equity ratio.

---

Definitions:

Abnormal Behavior

Behavior that is deviant, maladaptive, or distressful according to cultural norms and can significantly interfere with one’s daily functioning.

Faulty Thinking

Patterns of thought that are typically negative and irrational, often leading to inaccurate conclusions or emotional distress.

Distorted Perceptions

Instances where one's understanding or interpretation of sensory information does not accurately reflect reality.

Manipulative

Characterized by the skillful handling, controlling, or influencing of others in a clever or unscrupulous way.