Inventory Turnover and Asset Turnover Are Both Examples of Which

question 44

Multiple Choice

Inventory turnover and asset turnover are both examples of which type of financial ratio?

• A) liquidity ratio
• B) profitability ratio
• C) activity ratio
• D) leverage ratio
• E) revenue ratio

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Definitions:

Inferior Good

A type of good for which demand decreases as the income of the consumer increases, contrasting with normal goods.

Substitute

A good or service that can be used in place of another good or service, often due to similarities in features or functions.

Expensive

Describing an item or service that has a high cost or price relative to its perceived value or compared to other options.

Maple Syrup

A sweet liquid made by boiling the sap of maple trees, commonly used as a topping for pancakes and waffles.