Which of the Following Is NOT a Decision Tool Based

question 40

Multiple Choice

Which of the following is NOT a decision tool based on working capital?

• A) cash ratio
• B) acid-test ratio
• C) current ratio
• D) dividend payout ratio

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Definitions:

Budgeted Sales

The projected amount of sales revenue a company expects to achieve during a specific period, often part of financial planning.

Budgeted Raw Material Purchases

The estimated amount a company plans to spend on raw materials for production over a specific period.

Estimated Direct Labor Cost

The projected cost of labor directly involved in the manufacturing of goods or provision of services, excluding indirect labor costs.

Expected Cash Collections

Projected amounts of money a business anticipates receiving from its customers or clients over a specific period.