Which of the Ratios Listed Helps to Indicate the Ability

question 39

Multiple Choice

Which of the ratios listed helps to indicate the ability of the company to meet its current obligations?

• A) current ratio
• B) profit margin
• C) debt-to-equity
• D) return on assets.

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Definitions:

Improshare

A productivity-sharing program where improvements in productivity lead to shared benefits among employees in the form of increased pay or bonuses.

Nonproduction Workers

Employees who are not directly involved in the production process, including roles in administration, management, and support services.

Service-Providers

Organizations or individuals that offer services to others, often in a professional, maintenance, or consultative capacity.

Combined Distribution Plans

Retirement or benefit plans that incorporate features of both defined contribution and defined benefit plans, offering a combination of guaranteed payouts and contributions based on individual accounts.