You Have Prepared a Trend Series for Company XYZ for Three

question 6

Multiple Choice

You have prepared a trend series for Company XYZ for three years, 2004-2006 inclusive, using 2004 as the base year. Below are selected data.
$$\begin{array} { | l | c | c | c | } \hline & 2004 & 2005 & 2006 \\\hline \text { Sales } & 100 & 120 & 135 \\\hline \text { Net Income } & 100 & 118 & 128 \\\hline \text { Total Assets } & 100 & 119 & 130 \\\hline\end{array}$$
-Which of the following ratios is not generally considered to be helpful in assessing short-term liquidity?

• A) Acid test ratio
• B) Current ratio
• C) Days to collect receivables
• D) Days goodwill held

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Definitions:

Functional Fixedness

A cognitive bias that limits a person to using an object only in the way it is traditionally used, hindering the ability to see alternative uses or solutions.

Mental Set

A framework or mindset that shapes how a person approaches problems, based on previous experiences and perceptions.

Restructuring

Restructuring in psychology refers to the process of identifying and altering maladaptive thought patterns to improve emotional regulation and behavior.

General Intelligence

A theory proposing that a single factor underlies many cognitive abilities, such as reasoning, problem-solving, and knowledge.