Reliability Is the Extent to Which a Test Measures What

question 61

True/False

Reliability is the extent to which a test measures what it claims to measure.

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Definitions:

Inventory Turnover

A measure of how many times a company's inventory is sold and replaced over a period.

Average Sale Period

The average time taken to convert inventory into sales, also known as inventory turnover period.

Accounts Receivable Turnover

A financial ratio that measures how effectively a company is collecting on its credit sales by dividing net credit sales by average accounts receivable.

Horizontal Analysis

A side-by-side comparison of two or more years’ financial statements.