_________ Is a Measure of How Readily a Company Can

question 69

Multiple Choice

_________ is a measure of how readily a company can use its assets to generate profits.

• A)Leverage
• B)Activity
• C)Liquidity
• D)Profitability

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Definitions:

Goods

are tangible products or commodities that are produced or manufactured for sale.

Cost of Goods Available

Cost of Goods Available represents the total cost of merchandise available for sale during a certain period, including the beginning inventory plus net purchases.

Operating Expense

Costs associated with the normal day-to-day operations of a business, such as rent, utilities, and salaries, but excluding costs related to production.

Merchandising Company

A business entity that purchases finished goods and sells them at a profit, without altering their form.