If Your Liquid Assets Equal $15,000 and Your Current Debts

question 98

Multiple Choice

If your liquid assets equal $15,000 and your current debts equal $50,000, your liquidity ratio is:

• A) 30%.
• B) 70%.
• C) 143%.
• D) 233%.
• E) 333%.

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Definitions:

Fixed Costs

Expenses that do not change with the level of goods or services produced by a business.

Variable Costs

Expenses that vary directly with the level of production or volume of output.

Average Variable Cost

The total variable cost divided by the quantity of output produced, showing how variable costs change with output levels.

Cost Curves

Graphical representations of the costs associated with producing different quantities of goods, showing how costs change with changes in output.