"Days of Inventory" Is an Example of A(n)

question 19

Multiple Choice

"Days of inventory" is an example of a(n)

• A) leverage ratio.
• B) liquidity ratio
• C) activity ratio.
• D) asset management ratio.
• E) profitability ratio.

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Definitions:

Income Statement

A financial statement that shows a company's revenue and expenses over a specific period, revealing profit or loss.

Two-Column Journal

A form of journal in which there are only two amount columns, one for debits and one for credits.

Unadjusted Trial Balance

A listing of all the accounts in the general ledger with their balances before any adjustments are made.

Net Income

The net income of a business following the deduction of all costs and tax obligations from its total revenue.