Working Capital Turnover Ratio Indicates

question 4

Multiple Choice

Working capital turnover ratio indicates:

• A) the difference between current assets (excluding inventory) and current liabilities.
• B) the amount of working capital used in generating sales for the period.
• C) the bare minimum working capital that a company should have at any time.
• D) the amount of working capital used as a percentage of the assets owned by the company.

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Definitions:

Fraud

A deliberate deception practiced to secure unfair or unlawful gains.

Detect Fraud

The process of identifying false or misleading information, typically to gain a financial advantage.

Misrepresentations

False statements or lies that can affect the terms of a contract or agreement, and may lead to legal action if they cause harm or damage.

Due Diligence Inquiry

A comprehensive appraisal of a business or person prior to signing a contract, especially to evaluate its assets and liabilities and assess its commercial potential.