[amp_mcq option1=”a-2, b-4, c-3, d-1″ option2=”a-3, b-2, c-1, d-4″ option3=”a-3, b-1, c-4, d-2″ option4=”a-4, b-3, c-2, d-1″ correct=”option3″]<\/p>\n
The correct answer is: C. a-3, b-1, c-4, d-2<\/p>\n
Debtors turnover ratio is an activity ratio that measures how efficiently a company collects its receivables. It is calculated by dividing net credit sales by average accounts receivable.<\/p>\n
Proprietary ratio is a solvency ratio that measures the extent to which a company’s assets are financed by equity. It is calculated by dividing shareholders’ equity by total assets.<\/p>\n
Operating ratio is an efficiency ratio that measures how efficiently a company generates sales from its expenses. It is calculated by dividing operating expenses by net sales.<\/p>\n
Acid test ratio is a liquidity ratio that measures a company’s ability to meet its short-term obligations. It is calculated by dividing quick assets by current liabilities.<\/p>\n
Profitability ratio is a profitability ratio that measures a company’s ability to generate profits from its sales. It is calculated by dividing net income by net sales.<\/p>\n
Here is a brief explanation of each ratio:<\/p>\n
[amp_mcq option1=”a-2, b-4, c-3, d-1″ option2=”a-3, b-2, c-1, d-4″ option3=”a-3, b-1, c-4, d-2″ option4=”a-4, b-3, c-2, d-1″ correct=”option3″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[952],"tags":[],"class_list":["post-51751","post","type-post","status-publish","format-standard","hentry","category-costing","no-featured-image-padding"],"yoast_head":"\n