All of the following ratios are related to efficiency except for _______.
A) total asset turnover
B) fixed asset turnover
C) average collection period
D) cash ratio

Question

Quizplus · Accepted Answer

The cash ratio measures a company's ability to meet its short-term obligations with its cash and cash equivalents. It does not relate to efficiency. However, the other ratios listed (total asset turnover, fixed asset turnover, and average collection period) all relate to a company's efficiency in utilizing its assets and managing its accounts receivable.

All of the Following Ratios Are Related to Efficiency Except