Which of the following ratios measures how efficiently and effectively the firm is using its assets to generate revenue?
A) total asset turnover ratios
B) inventory turnover ratios
C) acid test ratio
D) return on investment
Question 2________ ratios measure how efficiently the firm is using its assets.
A) Liquidity
B) Leverage
C) Profitability
D) Activity
Question 3Ruth, a financial consultant, determines her client's leverage ratio to be very high. What suggestion could Ruth give to help the firm reduce its leverage ratio?
A) Increase the money supply by selling a part of its assets.
B) Pay back part of its debts to improve the ratio.
C) Maintain more current assets than current liabilities.
D) Reduce the sales to total assets ratio of the firm.
Question 4________ is when a manager in the work area interacts directly with employees to maintain supervision.
A) Preventive maintenance
B) Management by walking around
C) Reactive control
D) Feedforward control
Question 5Which of the following ratios examines the organization's use of debt to finance its assets and its ability to meet the interest payments on the debt?
A) liquidity ratios
B) leverage ratios
C) profitability
D) activity ratios
Question 6Donald discovers major flaws in the packaging department. He consults the production manager and formulates control measures to improve packaging. Here, Donald is using the ________ control.
A) feedback
B) reactive
C) concurrent
D) feedforward
Question 7The ________ ratios measure an organization's ability to meet its current debt obligations.
A) activity
B) liquidity
C) leverage
D) profitability
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