For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement

Question:

For each of the following liquidity ratios, indicate whether the change would be viewed as an improvement or deterioration:
(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.
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

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

Question Posted: