All of the Following Are Considered to Be Measures of a Company's

question 9

Multiple Choice

All of the following are considered to be measures of a company's short-term debt-paying ability except:

• A)Current ratio.
• B)Earnings per share.
• C)Inventory turnover.
• D)Average collection period.

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Definitions:

EOM

End of Month; a term used in various financial and business arenas to describe actions that take place at or by the conclusion of a month.

Credit Period

The duration of time a buyer has to pay a supplier for purchases without incurring interest or penalties.

Perishable

A perishable item is one that has a limited lifespan and can deteriorate or expire, often food, flowers, or medicine.

Buyer's Inventory

The stock of goods a purchaser has on hand, which represents a current asset on the balance sheet that is intended for resale or use in production.