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:

Salaried Salesman

A sales professional who is compensated with a fixed salary rather than or in addition to commissions based on sales volume.

Monitoring

The process of systematically observing, checking, and recording activities or data to ensure desired outcomes are being met.

Shirking

The behavior of avoiding work or responsibilities, often surreptitiously.

Accounting Staff

Individuals responsible for managing financial records, transactions, and reporting within an organization.