Which of the Following Is Not a Ratio Included in Analysis

question 75

Multiple Choice

Which of the following is not a ratio included in analysis of the operating cycle?

• A)Days to collect receivables.
• B)Days to buy inventory.
• C)Days to pay payables.
• D)Days sales in inventory.

---

Definitions:

Double-Declining-Balance

A method of accelerated depreciation that doubles the normal depreciation rate, allowing more depreciation in the earlier years of an asset’s life.

Depreciation Expense

The portion of an asset's cost allocated over its useful life to account for its decline in value over time.

Useful Life

The duration over which an asset is expected to be economically viable and useful to the owner.

Depreciation Expense

The systematic allocation of an asset's cost over its useful life, reflecting the consumption or wear and tear of the asset.