24) Why would a company calculate its operating margin?

A) to evaluate how well resources are being used to generate profits

B) to determine how efficiently it is using resources to make and sell products

C) to assess if it has the resources to meet the claims of short-term creditors

D) to evaluate how efficiently managers are turning inventory over

E) to monitor if managers are collecting revenue from customers

26) To measure how well the managers of an equipment rental service are converting the company's assets into value, _______ ratios would be used.

A) leverage

B) liquidity

C) profit

D) current

E) activity

28) What do internal control processes measure for the balanced scorecard?

A) how well the companys actions contribute to its overall financial health

B) how well company resources are managed to ensure future success

C) if the companys processes add value to customers and shareholders

D) how well the company provides service to its customers

E) the extent to which the company incorporates sustainability