Kimberly Decides to Go Back to College Full Time at the Age

question 16

Multiple Choice

Kimberly decides to go back to college full time at the age of 30,and finds herself with a much lower income than she was earning before.Now that she has less income,she finds herself eating less steak and more pasta than ever before.We can conclude:

• A)steak and pasta are both normal goods,because they are both food she eats regardless of her income.
• B)steak and pasta are both inferior goods,because they are both food she eats regardless of her income.
• C)pasta is an inferior good because her demand increased when her income went down.
• D)Both b and c are true.

Understand different uses and sources of cash in business operations.

Comprehend the concept and application of financial ratios for business analysis.

Identify and analyze components of a statement of cash flows.

Understand the interrelations between profitability, asset management, and leverage ratios.

---

Definitions:

Raw Materials

Materials in their natural, unprocessed state used as inputs in production processes.

FOB Destination

A shipping term where the seller bears the shipping costs and retains ownership of the goods until they are delivered and accepted by the purchaser.

Consignment Stock

Inventory that is in the possession of the customer but still legally owned by the supplier until sold.

Stock Discrepancies

Differences between the amount of inventory recorded and the actual inventory present, often resulting from errors or theft.