A Key Element of a Decision Support System (DSS) Is

question 40

True/False

A key element of a decision support system (DSS) is the person using the system.

Calculate and analyze inventory turnover to understand how effectively a company manages its inventory.

Interpret average collection period to assess the effectiveness of a company's credit policies and cash collection processes.

Determine accounts receivable turnover and its implications on liquidity and operational efficiency.

Analyze the financial leverage through the equity multiplier, debt-to-equity ratio, and times interest earned ratio to understand a company's financial structure and risk.

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Definitions:

Dividends

Payments made by a corporation to its shareholder members, typically from profits or reserves.

Net Profit Margin

A financial metric that measures how much of every dollar of revenues is translated into profits, after all expenses are deducted.

Earnings Per Share

A measure of a company's profitability, calculated as net income divided by the number of outstanding shares.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period, highlighting operating performance.