Which of the Following Groups of Ratios Measure a Company's

question 125

Multiple Choice

Which of the following groups of ratios measure a company's ability to sell inventory and collect receivables?

• A)Current ratio, inventory turnover and accounts receivable turnover
• B)Inventory turnover, accounts receivable turnover and rate of return on net sales
• C)Inventory turnover, accounts receivable turnover and days' sales in receivables
• D)Days' sales in receivables and rate of return on net sales

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Definitions:

Organizational Hierarchy

A structured ranking of individuals within an organization based on levels of responsibility, authority, or status.

Geographic Dispersion

The spread or distribution of a population or entity across different geographical locations.

Reception

The act or process of receiving, such as how an audience receives and interprets a message.

Communication Process

The series of steps taken to convey messages effectively from sender to receiver.