Which of the following is not used to measure the efficiency with which a firm uses its assets?
A)Inventory turnover ratio
B)Current ratio
C)Accounts receivable turnover ratio
D)Asset turnover

Question

Quizplus · Accepted Answer

The current ratio is a measure of a company's ability to pay off its short-term liabilities with its current assets. It does not directly measure the efficiency with which a firm uses its assets. The other options (inventory turnover ratio, accounts receivable turnover ratio, and asset turnover) all relate to the efficiency with which a company uses its assets.

Which of the Following Is Not Used to Measure the Efficiency