Which One of the Following Is TRUE

question 26

Multiple Choice

Which one of the following is TRUE?

• A) Fixed assets turnover represents the contribution of every dollar of assets to credit sales.
• B) The inverse of the inventory turnover times 365 estimates the number of days to liquidate inventory.
• C) The collection period of receivables and payables cannot be inferred from their productivity ratios.
• D) Productivity ratios estimate the productivity of borrowed amounts.

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Definitions:

Organized

Being arranged in an orderly, structured, and coherent manner, often referring to systems, entities, or activities.

Low Entropy

A state of order or predictability in a system, often associated with low levels of disorder and high levels of organization.

First Law

Often referred to as the law of energy conservation, stating that energy cannot be created or destroyed in an isolated system.

Thermodynamics

The branch of physics that deals with the relationships between heat and other forms of energy, and how these affect matter.