Which of the Following Is Not a Decision Tool Based

question 148

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:

Tax Code

The system of laws and regulations that govern the levying of taxes on individuals, businesses, and other entities, which outlines the rates, exemptions, and enforcement policies.

Real Incomes

Income of individuals or nations adjusted for inflation, reflecting the purchasing power of the income.

Nominal Interest Payments

The amounts paid by borrowers to lenders as the cost of borrowing money, not adjusted for inflation.

Interest Payments

Money paid regularly at a particular rate for the use of money lent, or for delaying the repayment of a debt.