Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Why could the inventory turnover ratio be relevant for a restaurant but not for a law firm whereas the accounts receivable turnover ratio may be
Why could the inventory turnover ratio be relevant for a restaurant but not for a law firm whereas the accounts receivable turnover ratio may be relevant for a law firm but not a restaurant? aInventory is likely a significant asset for both the restaurant and the law firm.
bAccounts receivable is likely a significant asset for both the restaurant and the law firm.
cNeither inventory nor accounts receivable is likely to be a significant asset for either enterprise.
dThe restaurant's balance sheet likely reports inventory but not accounts receivable whereas the law firm's balance sheet probably reports accounts receivable but not inventory.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started