You Are Considering an Investment in Apple Stock and Wish

question 108

Multiple Choice

You are considering an investment in Apple stock and wish to assess the firm's short-term debt-paying ability.All of the following ratios are used to assess liquidity except:

• A)Debt to equity ratio.
• B)Inventory turnover.
• C)Quick ratio.
• D)Accounts receivable turnover.

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Definitions:

Returns To Scale

Describes how output changes in response to a proportional change in all inputs in the production process.

Production Function

A production function describes the relationship between inputs used in production and the resulting output, showing how the quantity of output depends on the quantities of different inputs.

Input

Resources used in the production process, including labor, materials, and capital, to produce goods or services.

Technical Rate

The rate at which technological improvement increases production efficiency, often measured as a percentage increase in output per unit of input.