Efficiency Ratios

question 52

Multiple Choice

Efficiency ratios:

• A) include the quick ratio, asset turnover ratio, and return on equity.
• B) are used to measure how well the company uses its assets.
• C) are used to measure how liquid the company is.
• D) help answer questions of firm stability.

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Definitions:

Recognition

The cognitive process of identifying a familiar stimulus from among a variety of unfamiliar ones.

Recall

The process of retrieving information stored in the memory without the aid of cues.

Reconstruction

The process of assembling or rebuilding mental representations based on memory, influences, and expectations.

Short-Term Memory

The component of memory that temporarily holds a limited amount of information for a short period of time.