The Current Ratio and Inventory Turnover Ratios Both Help Us

question 67

True/False

The current ratio and inventory turnover ratios both help us measure the firm's liquidity.The current ratio measures the relationship of a firm's current assets to its current liabilities, while the inventory turnover ratio gives us an indication of how long it takes the firm to convert its inventory into cash.

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A practice used by investors to evaluate potential investments based on social, environmental, and ethical criteria.

Organizations

Structured groups of people who come together to meet a set of shared goals or fulfill a specific purpose, such as companies, charities, and governments.

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The act of making choices or conclusions after considering various alternatives and their potential outcomes.

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