Question: Answer in true or False • Normally a relatively low Inventory Turnover

ID: 2588168 • Letter: Q

Question

Question: Answer in true or False

• Normally a relatively low Inventory Turnover is desirable T or F

• The ratio Gross Profit Margin is a measure of the profit percentage per dollar of sales T or F

• The four classifications of ratio analysis are liquidity ratio, fixed asset ratio, profitability ratio and T or F efficiency ratios

• Liquidity ratios measure the ability of a business to meet long term obligations T or F

• Debt to Asset ratio measures the extent to which borrowed funds have been used to finance the acquisition of assets T or F

False : A high turnover is typically preferred and shows strong sales performance.

True: Gross margin shows how much profit a company generates with each dollar of sales

False: liquidity ratio, Solvency ratio, profitability ratio and efficiency ratio

False: Liquidity ratios cover both long & short term ability.

True: Debt to equity ratio means that t, what portion of a company’s total assets is financed from long term debt.

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