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Match the Term with the Correct Description

question 11

Multiple Choice

Match the term with the correct description.
-Quick service restaurants

Interpret the main components of shareholder equity.
Understand the basic components and calculations involved in a balance sheet.
Comprehend purchasing, pricing, compensation, and policies relevant to business operations.
Understand the concepts and calculations related to the cash conversion cycle (CCC), Days of Inventory (DOI), Days Sales Outstanding (DSO), and Days Payable Outstanding (DPO).

Definitions:

Total Asset Turnover Ratio

A financial metric that measures the efficiency of a company's use of its assets in generating sales revenue, calculated as net sales divided by total assets.

Financial Leverage

The use of borrowed funds to amplify return on investment.

Current Assets

Assets expected to be converted into cash, sold, or consumed within a year, including cash, marketable securities, receivables, and inventory.

Capital Intensity Ratio

The Capital Intensity Ratio is a financial metric that measures the amount of investment in capital assets required to generate one dollar of revenue.

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