Which Ratio Can Help Estimate the Number of Years Required

question 64

Multiple Choice

Which ratio can help estimate the number of years required to pay off a company's total debt?

• A) total debt ÷ net income
• B) net income ÷ operating cash flow
• C) total debt ÷ current assets
• D) cash flows for operations ÷ total liabilities

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Definitions:

Discrimination

The practice of according individuals or groups inferior treatment in hiring, occupational access, education and training, promotion, wage rates, or working conditions even though they have the same abilities, education, skills, and work experience as other workers.

Labor Force

The total number of people employed or actively seeking employment in an economy or specific labor market.

Competitive Economy

An economic system where businesses operate in a free market, with minimal barriers to entry and where prices are determined by supply and demand.

Demand Curves

Graphs that show the relationship between the price of a good and the quantity demanded by consumers at those prices.