Examlex
Which of the following statements regarding turnover is true?
Acid-test Ratio
A financial metric that measures a company's ability to pay its current liabilities without relying on the sale of inventory.
Debt to Assets Ratio
A financial metric indicating the proportion of a company's assets financed through debt, used to assess financial leverage.
Profit Margin
A financial metric used to evaluate the profitability of a business, calculated by dividing net income by sales.
Operating Expenses
Costs associated with the day-to-day operations of a business, such as rent, utilities, and salaries, excluding the cost of goods sold.
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