Data Should Be Pertinent Both to the Context and Subject

question 102

Multiple Choice

Data should be pertinent both to the context and subject at hand.Which of the following data characteristics does this represent?

• A) cost effectiveness
• B) timeliness
• C) sufficiency
• D) relevancy

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Definitions:

Acid-Test Ratio

A financial metric that measures a company's ability to pay off its current liabilities with its most liquid assets.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a certain period, indicating the efficiency of inventory management.

Working Capital

A financial metric representing the operational liquidity available to a business, calculated as current assets minus current liabilities.