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Which of the following statements is LEAST-Likely true?
Asset Management Ratios
Financial metrics used to assess how efficiently a company manages its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.
Average Collection Period
The average number of days it takes for a company to receive payments owed by its customers for credit sales.
Inventory Turnover
A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.
Quick Ratio
Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.
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