The Current and Inventory Turnover Ratios Both Help Us Measure

question 16

True/False

The current and inventory turnover ratios both help us measure a firm's liquidity. The current ratio measures the relationship of the firm's current assets to its current liabilities, while the inventory turnover ratio gives us an indication of how long it takes the firm to convert its inventory into cash.

---

Definitions:

Full Day

A full day typically refers to the complete span of a day, usually considered as a 24-hour period, or the working or operational hours defined within a day, often consisting of 8-12 hours.

Educational Television

Television programming designed with the primary aim of educating the audience, often including shows that target child and adult learners on various topics.

Passive Behavior

Actions characterized by submission or a lack of response to external stimuli or pressures.

Sesame Street

A long-running educational children's television series known for its use of puppetry, animation, and cultural references to teach various topics.