Which Key Financial Ratio Is Defined as the Estimate of the Number

question 28

Multiple Choice

Which key financial ratio is defined as the estimate of the number of days from the time a company purchases inventory, sells it, and collects the receivable?

• A) Inventory turnover.
• B) Accounts receivable turnover.
• C) Gross operating cycle.
• D) Net operating cycle.
• E) Accounts payable turnover.

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Definitions:

Illusory Correlations

The mental tendency to assume a connection between two factors even if there is none.

Online Trading

The act of buying and selling financial products through an online trading platform.

Market Savvy

Possessing practical knowledge or understanding of the market, often used in the context of making smart business or investment decisions.

Day Trader

An investor who buys and sells securities within the same trading day, often taking advantage of small price movements.