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Which One of the Following Is TRUE

Question 26

Multiple Choice

Which one of the following is TRUE?


A) Fixed assets turnover represents the contribution of every dollar of assets to credit sales.
B) The inverse of the inventory turnover times 365 estimates the number of days to liquidate inventory.
C) The collection period of receivables and payables cannot be inferred from their productivity ratios.
D) Productivity ratios estimate the productivity of borrowed amounts.

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