Which of the Following Ratios Would Be Most Useful to Obtain

question 3

Multiple Choice

Which of the following ratios would be most useful to obtain quantitative information on the company's inventory management processes?

• A)activity ratio
• B)profitability ratio
• C)liquidity ratio
• D)leverage ratio
• E)solvency ratio

---

Definitions:

Offshore Source

Obtaining goods or services from another country, often with the intention of reducing costs.

Delivered Duty Paid

An international trade term where the seller is responsible for delivering goods at the buyer's doorstep, clearing customs, and paying all import duties.

Incoterm

A set of predefined commercial terms published by the International Chamber of Commerce relating to international commercial law.

Supplier Responsibilities

Supplier responsibilities involve obligations that vendors must fulfill, including delivering quality goods on time, adhering to contracts, and maintaining ethical practices.