Which Ratio Measures the Number of Dollars of Sales Produced

question 21

Multiple Choice

Which ratio measures the number of dollars of sales produced per dollar of inventory?

• A)Asset management
• B)Cash
• C)Internal-growth
• D)Inventory turnover

---

Definitions:

Liquidity

The ease with which an asset or security can be converted into cash without affecting its market price.

Speculators

Investors who attempt to profit from market volatility by buying and selling stocks or other financial instruments, often taking higher risks.

Hedgers

Individuals or entities that enter financial contracts to reduce exposure to risk, typically by locking in prices for commodities or currencies.

Positions

Refers to the holdings or inventory of investments or trading assets owned by institutions or individuals.