All of the Following Ratios Represent Activity Ratios EXCEPT

question 98

Multiple Choice

All of the following ratios represent activity ratios EXCEPT

• A) accounts payable period.
• B) days of inventory.
• C) net working capital turnover.
• D) earnings per share.
• E) days of cash.

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Definitions:

Nominal Rate

The interest rate before adjustments for inflation; essentially, the face value rate of interest.

Inflation

How fast the general price index for merchandise and services escalates, corroding the purchasing strength.

Spot Rate

The current market price of a currency, security, or commodity available for immediate delivery.

Interest Rate Parity

A theory asserting that the difference between the interest rates of two countries is equal to the difference between the forward exchange rate and spot exchange rate.