CFA Practice Question

There are 534 practice questions for this study session.

CFA Practice Question

The speed at which a firm turns over its accounts receivable, inventory, and longer-term assets is measured by ______.

I. liquidity ratios
II. debt utilization ratios
III. asset utilization ratios
A. III only
B. I and III
C. II and III

User Contributed Comments 6

User Comment
kalps Question only specified assets - i.e. inventory, receivables and LT assets
Mdavid2 Reilly & Brown categorize receivables turnover and inventory turnover as internal liquidity ratios (chapter 10, pp 323-324)
danlan II is not a correct term.
octavianus L-T Assets use asset utilization ratios
surob Mdavid2 is right about internal liquidity part
CFunder Read the note on pg. 3 of the CFA curriculum - volume 3 - its not (receivables/inventory turnover) not included in the liquidity ratios provided pg.329 but DSO and DOH are included.
You need to log in first to add your comment.