Which One of the Following Is TRUE

question 57

Multiple Choice

Which one of the following is TRUE?

• A)Fixed asset turnover represents the contribution of every dollar of assets to credit sales.
• B)The inverse of the inventory turnover times 365 estimates the number of days to liquidate inventory.
• C)The collection period of receivables and payables cannot be inferred from their productivity ratios.
• D)Productivity ratios estimate the productivity of borrowed amounts.

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Definitions:

Productivity

The measure of efficiency in converting inputs into outputs, often assessed in terms of the amount produced per unit of labor or resources.

Human Relations

The study of the behavior of individuals and groups in organizational settings.