The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity ratio Oc. Operating cash flow to current lia d. Earnings per share O e. Gross Operating Profit Margin ratio (also callded Operating efficiency ratio)

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter12: Balanced Scorecard And Other Performance Measures
Section: Chapter Questions
Problem 12MC: The cost of equity is _______. A. the interest associated with debt B. the rate of return required...
icon
Related questions
Question
QUESTION 44
The
ratio is the best overall measure of management's performance
O a. Activity ratio
b. Debt-equity ratio
O. Operating cash flow to current lia
d. Earnings per share
e. Gross Operating Profit Margin ratio (also callded Operating efficiency ratio)
QUESTION 45
Financial leverage is
O a. The extent to which an operation's expenses are fixed rather than variable
b. The use of debt in place of equity to increase the return on equity dollars already invested
O C. The use of equity in place of debt to increase the return on debt
d. None of the abov
QUESTION 46
When owners use financial leverage, they transfer part of their risk to
O a. Creditors
O b. Government agencies
O C. Managers
O d. None of the abov
Transcribed Image Text:QUESTION 44 The ratio is the best overall measure of management's performance O a. Activity ratio b. Debt-equity ratio O. Operating cash flow to current lia d. Earnings per share e. Gross Operating Profit Margin ratio (also callded Operating efficiency ratio) QUESTION 45 Financial leverage is O a. The extent to which an operation's expenses are fixed rather than variable b. The use of debt in place of equity to increase the return on equity dollars already invested O C. The use of equity in place of debt to increase the return on debt d. None of the abov QUESTION 46 When owners use financial leverage, they transfer part of their risk to O a. Creditors O b. Government agencies O C. Managers O d. None of the abov
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Principles of Accounting Volume 2
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
Accounting
ISBN:
9781337690881
Author:
Jay Rich, Jeff Jones
Publisher:
Cengage Learning