Identify the ratio below that does not monitor non-value added time.
A)Quick Ratio
B)Inventory Turnover
C)Accounts Payable Turnover
D)Accounts Receivable Turnover

Question

Quizplus · Accepted Answer

The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. It does not factor in non-value added time such as time spent waiting for materials or equipment, which could negatively impact a company's ability to meet its obligations in the long run. The other ratios listed, such as Inventory Turnover, Accounts Payable Turnover, and Accounts Receivable Turnover, all measure how efficiently a company is using its resources and managing its cash flows, which can include monitoring non-value added time.

Identify the Ratio Below That Does Not Monitor Non-Value Added