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which of the following is true regarding asset management ratios?

-350_INTRODUCTION TO FINANCE (SPRING 2019) Which of the following is true regarding Asset Management Ratios? I. They measure the companys ability to use its assets to pay debt. Il. They include inventory turnover, receivables turnover, and asset turnover. Ill. They measure how efficiently a company uses its assets to generate sales. IV. They measure the companys ability to generate earnings. Select one: o a. Ill only. b.I and Il only O c.ll only. o d. Il and IlIl only e. I only
Which of the following is true regarding the Days Sales in Inventory Ratio? l. It measurés how efficiently the company uses inventory to generate earnings. Il. It is calculated as 365 days divided by Inventory Turnover. Ill. It measures the number of days it will take a company to sell all of its inventory IV. It measures how many times a companys inventory is sold and replaced in a year. Select one: a. Il and IV only o b. Ill only. O c. Il only. O d. Il and IlIl only e. II, ll, and IV only.
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Answer #1

Answer : (d) : II & III

ASSET MANAGEMENT RATIOS ARE USEFUL IN MEASURING SUCCESS IN MANAGING ITS ASSETS TO GENERATE SALES. ALL TURNOVER RATIOS ARE PART OF ASSET MANAGEMENT RATIOS.

Answer : (d) : II & III

DAYS SALES IN INVENTORY RATIO IS IN DAYS. IT DOES NOT MEASURE HOW MANY TIMES A COMPANY'S   INVENTORY SOLD, BECAUSE FOR THAT INVENTORY TURNOVER RATIO IS REQUIRED

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