Use the Following Information for Questions

question 49

Multiple Choice

Use the following information for questions.
Nelly Inc. reported net credit sales of $24,000,000 and cost of goods sold of $18,000,000 for the year. The average inventory for the year was $6,000,000.
-Some of the ratios that are used to determine a company's short-term debt paying ability are

• A) asset turnover, times interest earned, current ratio, and receivables turnover.
• B) times interest earned, inventory turnover, current ratio, and receivables turnover.
• C) times interest earned, current ratio, and inventory turnover.
• D) current ratio, receivables turnover, and inventory turnover.

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Definitions:

Isostatic Adjustment

The equilibrium adjustment of the Earth's crust due to changes in load (such as the melting of glaciers), affecting the crust's vertical movement.

Significant Erosion

The process whereby soil, rock, and other surface material are removed from one location and transported elsewhere, typically by wind, water, or ice, in a manner that noticeably alters the landscape.

Mountain

A natural elevation of the Earth's surface rising significantly above the surrounding landscape, often formed through tectonic forces or volcanism.

Uplifted

Refers to regions of the Earth’s crust that have been raised vertically, often due to tectonic processes.