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If your goal is determine how effectively a firm is managing its assets, which o

ID: 2698345 • Letter: I

Question

If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine? (Points : 5) profit margin, current ratio, fixed charge coverage ratio
quick ratio, debt ratio, time interest earned
inventory turnover ratio, days sales outstanding, fixed asset turnover ratio
total assets turnover ratio, price earnings ratio, return on total assets
time interest earned, profit margin, fixed asset turnover ratio
If your goal is determine how effectively a firm is managing its assets, which of the following sets of ratios would you examine? (Points : 5)

Explanation / Answer

Hi,


Please find the answer as follows:


Inventory turnover ratio, days sales outstanding, fixed asset turnover ratio is the correct option.


Thanks.