The Current Ratio and Inventory Turnover Ratios Both Help Us

question 78

True/False

The current ratio and inventory turnover ratios both help us measure the firm's liquidity.The current ratio measures the relationship of a firm's current assets to its current liabilities, while the inventory turnover ratio gives us an indication of how long it takes the firm to convert its inventory into cash.

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A political and social philosophy advocating for progress, change, and improvement in society through reforms, typically emphasizing issues of equality, welfare, and justice.

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