The Ability of a Company to Sell Inventory Is Measured

question 116

Multiple Choice

The ability of a company to sell inventory is measured by which of the following ratios?

• A)Acid-test ratio
• B)Inventory turnover ratio
• C)Current ratio
• D)Day's sales in receivables

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Definitions:

Depreciation

The reduction in the value of an asset over time, typically due to wear and tear, usage, or aging.

GDP

Gross Domestic Product, the total value of all goods and services produced within a country over a specified period, typically a year.

Imports

Goods or services brought into one country from another for sale.

Exports

Goods or services sent from one country to be sold in another country.