Leading,coincident,and Lagging Indicators Are Based on the Concept That

question 3

Multiple Choice

Leading,coincident,and lagging indicators are based on the concept that:

• A)expectations of future inflation is the driving force of the economy.
• B)expectations of future profits are the driving force of the economy.
• C)expectations of future unemployment is the driving force of the economy.
• D)none of the above.

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Definitions:

Days' Sales Uncollected

A financial metric that measures how long it takes, on average, for a company to collect cash from its credit sales.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated by comparing the profit and the revenue.

Total Asset Turnover

A financial measure that calculates the ability of a company to turn its assets into sales revenue.

Return On Total Assets

A financial ratio that measures a company's ability to generate profit from its assets.