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W hich of the following statements is correct? The receivables turnover ratio measures how many times, on average, a company collects its receivables during the

Which of the following statements is correct?
  • The receivables turnover ratio measures how many times, on average, a company collects its receivables during the year.
  • The inventory turnover ratio measures how many times, on average, a company sells its entire inventory during the year.
  • The current ratio indicates whether a company has sufficient availability of current assets to pay current liabilities.
  • All of the other answer choices are correct.

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