alleryStart learning →Which areas of efficiency are described as important?
APayroll, rent, utilities
BAudit, tax, compliance
CBoard, chair, committees
DSales, receivables, inventory
Answer & Solution
Correct answer: D. Sales, receivables, inventory
1. Efficiency concerns a specific set of operating areas.
2. Efficiency ratios show how well a company manages its assets.
3. Important areas of efficiency are named directly.
4. They are the management of sales, accounts receivable, and inventory.
_Source: OpenStax Principles of Finance (CC BY 4.0), Ch 6 'Measures of Financial Health'_
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