Which of the Following Measures Can Be Used to Evaluate

question 66

Multiple Choice

Which of the following measures can be used to evaluate a company's ability to meet future debt obligations after paying operating expenses, dividends and making capital expenditures?

• A)earnings per share
• B)net income
• C)cash flow adequacy ratio
• D)net increase or decrease in cash and cash equivalents

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Definitions:

MRP

Marginal Revenue Product, the additional revenue generated by employing one more unit of a resource, critical in resource allocation.

Capital

Financial assets or resources that businesses or individuals use to generate wealth through investment, production, or development.

Labor

The physical and mental effort used in the production of goods and services, often considered one of the primary factors of production.

Marginal Physical Product

The extra yield obtained by employing an additional unit of a variable factor, while keeping all other factors unchanged.