Working Capital Turnover Ratio Indicates

question 4

Multiple Choice

Working capital turnover ratio indicates:

• A) the difference between current assets (excluding inventory) and current liabilities.
• B) the amount of working capital used in generating sales for the period.
• C) the bare minimum working capital that a company should have at any time.
• D) the amount of working capital used as a percentage of the assets owned by the company.

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Definitions:

Random Numbers

A sequence of numbers or symbols that cannot be reasonably predicted better than by a random chance, often used in simulations and statistical sampling.

Standard Probability Distributions

Specific mathematical functions that provide the probabilities of occurrence of different possible outcomes for a particular phenomenon.

Simulation Models

Computational models that simulate complex real-world processes or systems to analyze behavior and predict outcomes under different scenarios.

Advantages

The favorable factors or benefits associated with a situation, decision, or proposal.