BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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True
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False
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Detailed explanation-1: -Accounts Receivable Period is the time it takes to collect cash from the sale of the inventory.
Detailed explanation-2: -The inventory turnover ratio is a measure of how many times the inventory is sold and replaced over a given period. Inventory Turnover Ratio = Cost of Goods Sold / Avg. Inventory.
Detailed explanation-3: -Which of the following about inventory turnover is true? It measures the number of times that the inventory is sold and replaced.
Detailed explanation-4: -Summary. The cash turnover ratio is an efficiency ratio that reveals the number of times that cash is turned over in an accounting period. The cash turnover ratio is calculated as revenue divided by cash and cash equivalents. The cash turnover ratio is ideal for companies that do not offer credit sales.