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The Quality of Income Ratio Measures the Portion of Net

question 58

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The quality of income ratio measures the portion of net income that generated cash flow from operating activities.


Definitions:

Marginal Revenue Product

The extra income produced by using an additional unit of a production element, like labor or capital.

Managerial Efficiency

The effectiveness with which managers utilize resources at their disposal to achieve organizational goals.

Fortune 500

A yearly listing produced and released by Fortune magazine, ranking the top 500 largest corporations in the U.S. based on their total annual revenue.

Factor's Price

The price paid for the use of a factor of production, such as labor, land, or capital.

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