Which of the Following Is Considered a Measure of Short-Term

question 41

Multiple Choice

Which of the following is considered a measure of short-term liquidity?

• A)gross profit percentage
• B)quick ratio
• C)dividend yield ratio
• D)return on assets ratio

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Definitions:

Perpetual System

An inventory management system that tracks the addition and subtraction of inventory with each sale and purchase in real time, providing a high level of detail and accuracy.

FIFO Method

Stands for "First-In, First-Out," a method of inventory valuation where the first items purchased are the first ones sold.

Job Order Cost Accounting

A system used to assign manufacturing costs to an individual product or batches of products, typically in customized or non-repetitive manufacturing environments.

T Accounts

A visual representation used in accounting to depict the debit and credit sides of an account.