Jones Corp

question 51

Multiple Choice

Jones Corp. reported current assets of $193,000 and current liabilities of $137,000 on its most recent balance sheet.
- The current ratio is:

• A) 0.7:1.
• B) 1:1.
• C) 0.4:1.
• D) 1.4:1.
• E) 0.3:1.

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Definitions:

Operating Leverage

A measure of how sensitive a company's operating income is to a change in sales volume, indicating the level of fixed costs in the business structure.

Sales Commissions

Payments made to sales personnel based on sales volume or value, serving as an incentive for increased sales performance.

Marketing Manager

A professional responsible for developing, implementing, and executing marketing plans for an organization or product, aiming to attract potential customers and retain existing ones.

Net Operating Income

The profit a company makes from its operations, exclusive of taxes and interest, reflecting its core business performance.