Which Ratio Is Considered an Internal Liquidity Ratio

question 79

Multiple Choice

Which ratio is considered an internal liquidity ratio?

• A) Total asset turnover
• B) Net fixed asset turnover
• C) Receivables turnover
• D) Equity turnover
• E) Inventory turnover

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Definitions:

Forecasting Errors

The difference between actual outcomes and previously predicted values, typically observed in the context of demand forecasting or financial forecasts.

Safety Inventory

Extra inventory held to guard against uncertainties in demand or supply, ensuring product availability.

Advanced Planning Systems

Integrated software systems designed to optimize production planning, scheduling, inventory control, and supply chain management.

Data Accuracy

The degree to which data correctly reflects the real-world values it is intended to represent.