For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement
Question:
(a) A decrease in the receivables turnover
(b) A decrease in the collection period
(c) An increase in the days sales in inventory
(d) An increase in the inventory turnover
(e) A decrease in the acid-test ratio
(f) An increase in the operating cycle.
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Related Book For
Accounting Principles Part 3
ISBN: 978-1118306802
6th Canadian edition Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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