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Examine the Words And/or Phrases Below and Determine the Relationship

question 54

Multiple Choice

Examine the words and/or phrases below and determine the relationship among the majority of words/phrases. Choose the option that does not fit the pattern.


Definitions:

Inventory Turnover

Inventory Turnover is a measure of how many times a company's inventory is sold and replaced over a period.

Acid-Test Ratio

A stringent test that measures a company's ability to pay off its short-term liabilities with quick assets, excluding inventory.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets, excluding inventory.

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