Question

The inventory turnover ratio and days sales outstanding (DSO) are two ratios that can be used to assess how effectively the firm is managing its liquidity in consideration of current and projected operating levels.

A. True
B. False

Answer 1

A. True

Step-by-step explanation:

In the case of the inventory turnover ratio and the days sales outstanding, these two ratios are applied in order to analyze how the firm would managed in effective manner in terms of the liquidity with respect to the present and the expected level of operations

So, the given statement is true

Therefore the option a is correct