Use the Database Tables Below to Answer the Following Questions

question 78

Multiple Choice

Use the database tables below to answer the following questions.
-Which of the relationships below is a many-to-many relationship?

• A)CUSTOMERS, SALES ORDERS
• B)SALES ORDERS, ITEMS
• C)ITEMS, SO LINE
• D)SO LINE, CUSTOMERS

---

Definitions:

Net Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term financial health of a company.

Current Ratio

A liquidity ratio that measures a company's ability to cover its short-term obligations with its current assets.

Du Pont Equation

A formula that breaks down the Return on Equity (ROE) into three key components: profit margin, asset turnover, and financial leverage, allowing for a deeper analysis of what drives a company's ROE.

Inventory Turnover

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