The Main Reason for Adding the Reminder If an Exchange

question 5

Multiple Choice

The main reason for adding the reminder if an exchange rate is more than one day old is -

• A)the exchange rate always changes from one day to the next
• B)the exchange rate may change from one day to the next
• C)to remind you to enter an exchange rate on the invoice
• D)the reminder is not needed

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Definitions:

Inventory Turnover

A financial ratio indicating how many times a company has sold and replaced inventory over a period.

Days' Sales

A financial ratio that measures how efficiently a company uses its inventory by calculating the average number of days the company takes to sell its inventory.

Financial Ratios

Quantitative measures derived from financial statements used to assess a company's performance, financial health, and value.

Current Ratio

An indicator measuring a corporation's potential to handle its short-term financial obligations with assets on hand.