alleryStart learning →Which four efficiency ratios are named for examination?
AGross, net, operating, pretax
BDebt, equity, coverage, leverage
CAR turnover, asset, inventory, days
DCurrent, quick, cash, working
Answer & Solution
Correct answer: C. AR turnover, asset, inventory, days
1. The efficiency family has four named members.
2. Efficiency ratios show how well assets are used.
3. Four efficiency ratios are examined: accounts receivable turnover and total asset turnover.
4. Inventory turnover and days' sales in inventory complete the four.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
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