Which Ratio Does Not Focus on Turnover

question 309

Multiple Choice

Which ratio does not focus on turnover?

• A) Inventory turnover.
• B) Days' sales in inventory.
• C) Receivable turnover.
• D) Total asset turnover.
• E) Interval measure.

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Definitions:

MPC

Marginal Propensity to Consume, the proportion of an increase in income that gets spent on consumption.

Multiplier Effect

The phenomenon where an initial increase in spending leads to a larger increase in income and consumption within the economy.

Net Exports

The value of a country's total exports minus its total imports, representing the net trade balance.

MPC

The Marginal Propensity to Consume, representing the proportion of any additional income that a consumer spends on goods and services, as opposed to saving it.