Steve Works in Purchasing for the Department of the Army

question 427

Multiple Choice

Steve works in purchasing for the Department of the Army on the east coast. He arrives at work at 6:00 a.m. and leaves by 3:00 p.m. He enjoys this schedule because he is an early riser. A disadvantage to the government in allowing Steve to use flextime is:

• A) morning workers are never as productive as afternoon workers.
• B) there is a one-hour window of opportunity to talk with defense contractors on the west coast, who work 8:00 a.m. to 5:00 p.m.
• C) this system will increase absenteeism.
• D) the government is required to hire twice as many people and spend additional funds training these individuals.

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Definitions:

Asset Turnover Ratio

A financial metric that measures the efficiency of a company in using its assets to generate sales or revenue; it is calculated by dividing net sales by average total assets.

Long-term Investments

Investments made with the intention to hold for more than one year, typically in bonds, stocks, or real estate, aiming for long-term capital growth.

Quick Ratio

A financial ratio that measures the ability to pay current liabilities with quick assets (cash, marketable securities, accounts receivable).

Account Payable

Financial obligations or debts owed by a business to its suppliers or creditors for goods and services received.