How Many of These Ratios Are Used to Evaluate Long-Term

question 55

Multiple Choice

How many of these ratios are used to evaluate long-term financial stability?
Debt ratio
Current ratio
Equity ratio
Profit margin
Quick ratio

• A) 2
• B) 3
• C) 4
• D) 5

Grasp the concept of employment stability policies and their impact on labor management.

Know the objectives of human resource strategies in effectively utilizing labor and designing jobs.

Differentiate between job enlargement and job enrichment in terms of responsibilities and outcomes.

Understand how maintaining a stable workforce affects wage policies in comparison to demand-driven employment.

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Definitions:

FIFO Method

"First In, First Out," an inventory valuation method where goods purchased or produced first are sold or consumed first.

Inventory Costing Methods

The techniques used to value and account for inventory, including first-in-first-out (FIFO), last-in-first-out (LIFO), and weighted average cost methods.

Perpetual System

An inventory management method where inventory quantities and cost of goods sold are updated continuously with each sale or purchase.

Periodic System

A method of inventory valuation for financial reporting purposes where a physical count of the inventory is performed at specific intervals to determine the ending inventory balance and the cost of goods sold.