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What is another name for the Quick Ratio? A. Inventory Turnover B. Days Sales Outstanding C....

What is another name for the Quick Ratio? A. Inventory Turnover B. Days Sales Outstanding C. Market/Book Ratio D. Acid Test Ratio

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Answer #1

Option a, Inventory turnover measures the efficiency with respect to its processing and inventory management.

Option b, day sales outstanding measures the number of days the company takes to collect cash from its credit sales.

Option c, market/book ratio measures the company’s current market value relative to its book value.

Option d, asset test ratio measures the ability of a company to pay current liabilities when they come due with only quick assets.

Hence, the answer is option d.

In case of any query, kindly comment on the solution.

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