Which of the Following Is a Correct Way to Measure

question 156

Multiple Choice

Which of the following is a correct way to measure productivity?

• A)divide the number of hours worked by output
• B)divide output by the number of hours worked
• C)compute output growth
• D)divide the change in output by the change in number of hours worked

---

Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are converted into cash over a period, measuring the efficiency of a company in collecting its debts.

Current Ratio

A financial ratio indicating a firm's capacity to settle short-term debts using its current assets.

Current Liabilities

Obligations or debts that a company expects to pay or settle within one year or its operating cycle, whichever is longer.

Current Assets

Assets that a company expects to convert into cash, sell, or consume within one year or its operating cycle, whichever is longer.