Test bank managerial accounting by kieso weygandt 5e ch014

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... It is computed by dividing current assets by current liabilities b The acid -test (quick) ratio is a measure of a company’s immediate short-term liquidity One computes this ratio by dividing the... Companies compute it by dividing net income by net sales 14-12 b Asset turnover measures how efficiently a company uses its assets to generate sales It is computed by dividing net sales by average assets... Companies compute the inventory turnover by dividing cost of goods sold by the average inventory during the year One computes the average days in inventory by dividing the inventory turnover into
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