Judging Only from the Ratios Given,which of the Following Clothing

question 35

Multiple Choice

Judging only from the ratios given,which of the following clothing wholesalers is least likely to have cash flow problems?

• A)Company A,who has a receivables turnover of 5,and an inventory turnover of 2
• B)Company B,who has a receivables turnover of 2,and an inventory turnover of 5
• C)Company C,who has a receivables turnover of 10,and an inventory turnover of 10
• D)Company D,who has a receivables turnover of 1,and an inventory turnover of 1

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Definitions:

Adjusted Trial Balance

A financial statement that lists all account balances in the general ledger after adjustments have been made, ensuring that total debits equal total credits.

Balance Sheet

A ledger entry that captures the financial position of an enterprise, recording assets, liabilities, and shareholder equity on a particular date.

Financial Statements

These are formal records of the financial activities and condition of a business, person, or other entity, typically including the balance sheet, income statement, and cash flow statement.

Adjusted Trial Balance

A statement that lists all the account titles and balances of a company after making necessary adjustments but before the preparation of financial statements.