The Rule of Thumb for Evaluating Current Ratio Is That

question 77

Multiple Choice

The rule of thumb for evaluating current ratio is that the minimum acceptable ratio is:

• A) 3.0.
• B) 1.0.
• C) 2.0.
• D) 4.0.

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Definitions:

Total Promotion Expenditures

The aggregate amount of money a company spends on all promotional activities, including advertising, sales promotions, public relations, and personal selling, over a set period.

Marketing Costs

Expenses related to promoting and selling a product or service, including advertising, market research, and distribution.

Unit Sales Price

The cost at which individual units of a product are sold to consumers or retailers.

Average Revenue

Average revenue is the amount of money that a company receives per unit of goods or services sold, calculated by dividing total revenue by the number of units sold.