"Days of Inventory" Is an Example of A(n)

question 19

Multiple Choice

"Days of inventory" is an example of a(n)

• A) leverage ratio.
• B) liquidity ratio
• C) activity ratio.
• D) asset management ratio.
• E) profitability ratio.

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Definitions:

Income Statement

A financial statement that shows a company's revenues and expenses over a specified period, leading to its net profit or loss.

Net Income

The amount of money left after all expenses, taxes, and costs have been subtracted from total revenue.

Owner's Equity

Represents the residual value of a business's assets after deducting its liabilities, indicating the ownership interest of the business owners.

Balance Sheet

A financial statement that displays a company's financial position at a specific point in time, showing assets, liabilities, and stockholders' equity.