Examlex
Which of the following is NOT one of the Big Five?
Average Collection Period
Refers to the average number of days it takes for a business to receive payments owed by its customers after a sale has been made on credit.
Inventory Turnover
A ratio that measures the number of times inventory is sold or used over a period, indicating the efficiency of inventory management.
Average Sale Period
This measure indicates the average duration it takes for a company to turn its inventory into sales.
Operating Cycle
The duration of time from the acquisition of inventory to the collection of cash from receivables, reflecting the company's efficiency in using its assets.
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