Accounts Receivable Turnover Is an Example of What Type of Ratio

question 102

Multiple Choice

Accounts Receivable Turnover is an example of what type of ratio?

• A) Liquidity
• B) Asset Management
• C) Debt Management
• D) Profitability

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Definitions:

EPS

Earnings Per Share, a financial ratio that measures the amount of net income earned per share of stock outstanding.

Operating Leverage

A measure of how much a company can increase its operating income by increasing revenue, indicating the ratio of fixed costs to variable costs.

EBIT

Earnings Before Interest and Taxes; a measure of a company's profitability that focuses on earnings generated from its core operations before the impact of financial and tax activities.

Business Risk

The exposure a company or investor faces due to uncertainties in the market or industry that could affect its profitability.