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:

Puberty

Marks the period in human development during which individuals attain sexual maturity and the ability to reproduce, accompanied by physical and hormonal changes.

General Changes

Broad modifications or alterations that are not specific to a single entity but affect a wider system or group.

Age of Viability

The age at which a premature baby is considered likely to be able to survive outside the womb, typically around 24 weeks of gestation.

Human Development

The multidisciplinary study of how people change and how they remain the same over time.