The Financial Ratio That Indicates How Efficiently the Managers of the Organization

question 51

Multiple Choice

The financial ratio that indicates how efficiently the managers of the organization are collecting the revenue due to the organization from the sale of its products or services is the _____________ ratio.

• A) debt-to-assets
• B) quick
• C) current
• D) days sales outstanding
• E) profit

Recognize the role of expectations in economics, especially regarding price levels.

Understand the impact of changes in the price level on consumption, investment, and net exports.

Acknowledge the reasons for and effects of economic fluctuations.

Understand how changes in the money supply affect interest rates, investment spending, and aggregate demand.

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Definitions:

Creditors' Claims

Rights of lenders to claim assets of a debtor in case of default.

Income and Loss Ratio

Usually referred to as the "loss ratio" in insurance, it is a metric that compares losses (claims paid and adjustment expenses) to premiums earned.

Capital Account

The capital account in accounting represents where all transactions involving the purchase and sale of capital assets are recorded, often reflecting the net worth of a business.

Liquidating

The process of converting assets into cash, often referring to the sale of assets during the winding down or closure of a business.