All the following ratios are measures of a company's ability to sell inventory and collect receivables except:

Question

Quizplus · Accepted Answer

Rate of return on net sales is a measure of a company's profitability, not its ability to sell inventory and collect receivables. The other ratios listed - accounts receivable turnover, inventory turnover, and days' sales in receivables - are specifically related to a company's ability to manage its inventory and receivables.

All the Following Ratios Are Measures of a Company's Ability