Which of the Following Statements Best Describes the Concept of Entropy

question 38

Multiple Choice

Which of the following statements best describes the concept of entropy?

• A)Energy has a tendency to disperse.
• B)Energy is neither created nor destroyed.
• C)The entropy of the universe is constantly decreasing.
• D)The energy released in a chemical reaction is the same as the difference in the energy of the bonds broken and formed.
• E)Energy has a tendency to remain in one place.

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Definitions:

Stockholders' Equity

The residual assets of a company that belong to the shareholders, calculated as the total assets minus total liabilities.

Total Asset Turnover Ratio

A financial ratio that measures a company's ability to generate sales from its assets by comparing net sales to average total assets.

Net Profit Margin Ratio

A financial metric that shows the percentage of a company's revenue that remains as profit after all operating expenses, interest, taxes, and preferred stock dividends have been deducted.

Property, Plant, and Equipment

Tangible assets that are held for use in the production or supply of goods or services, rental to others, or administrative purposes and are expected to be used during more than one period.