Podcast
Questions and Answers
What does the return on equity ratio measure?
What does the return on equity ratio measure?
- How many times a firm sells and replaces inventory in a year
- How quickly a firm collects payments on credit sales
- How well a firm uses its assets to generate sales
- How much income is generated per dollar invested by the owners (correct)
Which ratio is used to indicate how efficiently a firm collects its accounts receivable?
Which ratio is used to indicate how efficiently a firm collects its accounts receivable?
- Total asset turnover
- Receivables turnover (correct)
- Return on equity
- Inventory turnover
What does the inventory turnover ratio measure?
What does the inventory turnover ratio measure?
- How well a firm uses its assets to generate sales
- How quickly a firm collects payments on credit sales
- How many times a firm sells and replaces inventory in a year (correct)
- How much income is generated per dollar invested by the owners
Which ratio is used to evaluate how efficiently a company uses its assets to generate each dollar of sales?
Which ratio is used to evaluate how efficiently a company uses its assets to generate each dollar of sales?
What is the purpose of asset utilization ratios?
What is the purpose of asset utilization ratios?
How is the Receivables turnover ratio calculated?
How is the Receivables turnover ratio calculated?
Which ratio demonstrates how many times a firm sells and replaces its inventory over a year?
Which ratio demonstrates how many times a firm sells and replaces its inventory over a year?
Why do managers use asset utilization ratios?
Why do managers use asset utilization ratios?
What is the purpose of the Total Asset Turnover ratio?
What is the purpose of the Total Asset Turnover ratio?
Which ratio is used to show how many times a firm collects its accounts receivable in one year?
Which ratio is used to show how many times a firm collects its accounts receivable in one year?
Flashcards are hidden until you start studying
