Which of the Following Is Always True About a Critical

question 40

Multiple Choice

Which of the following is always true about a critical activity?

• A)LS = EF
• B)LF = LS
• C)ES = LS
• D)EF = ES

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Definitions:

Inventory Turnover Ratio

The inventory turnover ratio measures how many times a company's inventory is sold and replaced over a period.

Average Days

An accounting measure used to calculate the average number of days taken for a company to collect cash from its customers or pay its debts.

Dividend Yield Ratio

An economic ratio that illustrates the yearly dividend disbursement of a company as a percentage of its stock value.

Net Profit Margin

A financial ratio that shows the percentage of profit a company makes for each dollar of sales, after all expenses are deducted.