Which of the Following Is Used by Managers to Interpret

question 116

Multiple Choice

Which of the following is used by managers to interpret the numbers in financial statements?

• A) depreciation ratios
• B) asset analysis
• C) operating ratios
• D) ratio analysis

Understand the importance of tailoring communication towards quick responses.

Identify key elements of persuasive problem-solving messages.

Recognize components not included in effective problem-solving messages.

Determine actions that increase credibility in business communication.

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Definitions:

Salary Expense

This is the total amount paid to employees for services rendered during a specific period, typically reflecting wages or salaries before deductions.

Normal Credit Balance

The typical balance on the credit side of an account, as is the case for liabilities, equity, and revenue accounts.

Liabilities

Financial obligations or debts a company owes to others, which must be settled in the future by transfer of assets, provision of services, or other forms of economic benefit.

Capital

Refers to financial assets or resources that individuals, companies, or governments use to fund their operations and invest in their own growth.