Which of the Following Statements About Financial Statements Is Incorrect

question 86

Multiple Choice

Which of the following statements about financial statements is incorrect?

• A) The net margin ratio is a profitability ratio.
• B) The current ratio is a liquidity ratio.
• C) The debt to assets ratio is a liquidity ratio.
• D) The dividend yield is a stock market ratio.

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Definitions:

Total Output

Total output is the complete quantity of goods or services produced by an economy, firm, or production process within a specific period.

Marginal Cost

The additional cost incurred by producing one more unit of a product.

Average Variable Cost

The per unit cost of production excluding fixed costs, calculated by dividing the total variable costs by the quantity of output produced.

Short-Run Production

The period in which at least one input or factor of production is fixed, allowing firms to adjust only certain inputs to change output levels.