The Accounts Receivable Turnover and Inventory Turnover Ratios Are Used

question 15

Multiple Choice

The accounts receivable turnover and inventory turnover ratios are used to analyze

• A) Long-term solvency
• B) Profitability
• C) Liquidity
• D) Leverage

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Definitions:

Dividends Per Share

A measure of the dividend payment a shareholder receives for each share of stock held, calculated as the total dividends paid divided by the total number of shares.

Shares Of Stock

Shares of stock represent units of ownership in a corporation, entitling the holder to a proportion of the company's profits and voting rights.

Cash Flow

The whole amount of funds that are being transferred into and out of a company, affecting its immediate financial viability.

Assets

Resources owned by a company from which future economic benefits are expected.