Which One of the Following Ratios Identifies the Amount of Assets

question 57

Multiple Choice

Which one of the following ratios identifies the amount of assets a firm needs in order to generate $1 in sales?

• A)current ratio
• B)equity multiplier
• C)retention ratio
• D)capital intensity ratio
• E)payout ratio

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Definitions:

Accounting Entity

An economic unit with clearly defined boundaries for which financial transactions are recorded, separate from its owners or other business units.

Capital Credit

Refers to the allocation or distribution of a cooperative's net income back to its members based on their proportionate contribution or usage, often in the utility or service sector.

Partners' Capital Statement

A financial document that shows the changes in the equity of each partner in the business over a period of time.

Capital Account Balances

The financial records that show the contributions, withdrawals, and ownership interest of investors in a company.