Products Such as Tools and Repair Services That Are Used

question 155

Multiple Choice

Products such as tools and repair services that are used to assist in producing other products and services are referred to as

• A)components.
• B)complementary products.
• C)support products.
• D)derived products.
• E)materials.

---

Definitions:

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a period, indicating efficiency in managing stock.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Acid-test Ratio

A financial metric that assesses a company's ability to cover its short-term liabilities with its most liquid assets, excluding inventory.

Current Ratio

This ratio evaluates the ability of a business to cover its obligations due in the next year, by calculating the proportion of its current assets to its current liabilities.