Inventory Turnover Ratio is;

Question $12$Answer

a$.$

how many days of operating expenses are covered by current assets.

b$.$

this measures the amount of cash available as compared to current liabilities.

c$.$

measures how quickly inventory is sold.

d$.$

indicates the quantity of inventory on hand in relation to the quantity purchased

e$.$

measures the average number of days that it would take for the outstanding accounts receivable to be collected