The accounts receivable and inventory turnover ratios are important in evaluating the short-term efficiency of an entity.

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The accounts receivable turnover ratio measures how efficiently a company is able to collect its outstanding debts from customers, while inventory turnover ratio measures how efficiently a company is able to manage its inventory. Both ratios are important in evaluating the short-term efficiency of an entity.

The Accounts Receivable and Inventory Turnover Ratios Are Important in Evaluating