Which of the Following Is True of the Operating Ratio

question 29

Multiple Choice

Which of the following is true of the operating ratio?

• A) It reflects ability to meet long-term financial obligations.
• B) It shows managers and investors how much return the organization is generating relative to its assets.
• C) It indicates how liquid an organization's assets are.
• D) It indicates the effectiveness of specific functional areas rather than that of the total organization.
• E) It helps estimate the organization's ability to cover interest expenses on borrowed capital.

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Definitions:

Stimulus Discrimination

The ability to distinguish between different stimuli, responding only to the specific stimulus that is conditioned.

Conditioned Stimulus

A previously neutral stimulus that, after becoming associated with an unconditioned stimulus, eventually comes to trigger a conditioned response.

Spontaneous Recovery

The reappearance of a previously extinguished conditioned response after a period of no exposure to the conditioned stimulus.

Conditioned Response

A learned response to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.