Which Financial Ratio Measures the Number of Times That Average

question 87

Multiple Choice

Which financial ratio measures the number of times that average inventory of finished goods was turned over or sold during a period of time?

• A) days of inventory
• B) asset turnover
• C) average collection period
• D) fixed asset turnover
• E) inventory turnover

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Definitions:

Rejection Region

The range of values in hypothesis testing that, if the test statistic falls within, leads to the rejection of the null hypothesis.

F-distribution

A probability distribution used in analysis of variance (ANOVA), assessing whether the means of various groups are equal.

Upper Tail

The portion of a distribution of values that lies above the upper limit of the central part of the distribution.

Area

A measure of the extent of a two-dimensional surface or shape, expressed in square units.