Which of the following is correct?

Question

Quizplus · Accepted Answer

All of the options are correct.

A) Receivables turnover ratio calculates the number of times a company collects its average receivables balance within a given period. It indicates the company's frequency of cash collections.

B) Inventory turnover ratio calculates how many times a company sells and replaces its inventory within a given time frame. It measures the company's frequency of selling inventory.

C) Current ratio measures the company's ability to pay its current liabilities with its current assets. It reflects the company's liquidity position and ability to meet its short-term obligations.

Which of the Following Is Correct