Which of the Following Is the Best Indicator of Management's

question 103

Multiple Choice

Which of the following is the best indicator of management's effectiveness at generating profits relative to the firm's assets?

• A)Quick ratio
• B)Fixed assets turnover
• C)Operating income return on investment
• D)Accounts receivable turnover

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Definitions:

Production Possibilities Curve

A graphical representation that shows the maximum combination of goods or services that can be produced with a fixed amount of resources.

Efficiently

Pertains to achieving maximum productivity with minimal wasted effort or expense.

Studying

The act of dedicating time and attention to acquiring knowledge or understanding through reading, practice, or instruction.

Human Ingenuity

The capacity of humans to invent, create, and solve problems using creativity and intelligence.