CFA Practice Question
The speed at which a firm turns over its accounts receivable, inventory, and longer-term assets is measured by ______.
II. debt utilization ratios
III. asset utilization ratios
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. |