What Does the Inventory Turnover Period Ratio Measure

question 6

Multiple Choice

What does the inventory turnover period ratio measure?

• A)The liquidity of the firm
• B)How much the firm's current assets could decrease and still leave it able to pay its current liabilities
• C)Profitability
• D)The average time an organisation holds inventory

---

Definitions:

Electron

A subatomic particle with a negative charge, orbiting the nucleus of an atom and involved in chemical bonds and electricity.

S Orbital

A type of atomic orbital that is spherical in shape, representing the probability distribution of an electron.

Shape

The external form, contours, or outline of an object or figure, often influencing its functionality and perceived aesthetics.

P Orbital

A type of atomic orbital that has a dumbbell shape and can accommodate up to two electrons, significant for its directional properties in bonding.