Suppose You Are in a Spaceship Traveling Toward Earth at 95

question 270

Multiple Choice

Suppose you are in a spaceship traveling toward Earth at 95% of the speed of light.Compared with when your ship was at rest on Mars,what length do you measure for your spaceship?

• A) You cannot tell; your life processes have slowed down too much for you to measure the length.
• B) the same
• C) shorter
• D) longer

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Definitions:

LIFO

The last-in, first-out accounting method of valuing inventories.

Economic Earnings

The real flow of cash that a firm could pay out without impairing its productive capacity.

Liquidity Ratio

A financial metric used to determine a company's ability to pay off its short-term debts with its current assets.

Current Ratio

Current assets/current liabilities. Measures the ability of the firm to pay off its current liabilities by liquidating current assets.