The Two Ratios That Help a Company Measure How Effectively

Multiple Choice

The two ratios that help a company measure how effectively it is managing its inventory are

A) Inventory turnover and number of days' sales in inventory
B) Inventory turnover and number of days' purchases in accounts payable
C) Number of days' sales in inventory and number of days' purchases in accounts payable
D) Accounts receivable turnover and number of days' sales in inventory