The Selection Ratio Is ________________

question 18

Multiple Choice

The selection ratio is ________________.

• A) the number of applicants/the number of applicants hired
• B) the number of applicants hired/the number of applicants
• C) the number of applicants selected for interviews/the number of applicants
• D) The annualized wage costs of those hired/the annual selection expense

Understand the concept of net working capital and its significance to a firm’s financial health.

Understand the calculation and management of free cash flow.

Recognize the potential biases in management-prepared financial reports and their implications.

Learn about the mechanisms of cash sources and uses and their impact on a firm's liquidity.

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Definitions:

Cash Payment

A payment made in currency notes or coins as opposed to checks or electronic transfers.

Cash Dividend

This form of profit distribution by companies involves transferring cash to shareholders, typically determined by the board of directors.

Patent Amortization

The process of gradually writing off the initial cost of a patent over its useful life, reflecting its consumption or expiration.

Indirect Method

The indirect method is an approach used in cash flow statements to adjust net income for changes in non-cash accounts to calculate net cash provided by operating activities.