Question : The inventory turnover ratio can be used to determine?
Option 1: Sales effectiveness
Option 2: Average Age of Inventory
Option 3: Sales Turnover
Option 4: Average Collection Period by dividing it into 365.
Correct Answer: Average Collection Period by dividing it into 365.
Solution : The average collection period is the length of time it takes for a company to obtain accounts receivable payments due from its clients. By dividing the inventory turnover ratio by 365, the average Collection Period can be calculated. Hence option 4 is the correct answer.
Question : If the inventory turnover ratio is divided into 365, it becomes a measure of -
Question : Which of the following statements are correct with respect of the debt collection period?
Question : Water cannot be used to extinguish fire caused by electric current, because:
Question : Which money market instrument is highlighted in the given statement? Statement: It is used to finish the credit sales.
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