Question : If the inventory turnover ratio is divided into 365, it becomes a measure of -
Option 1: Average Age of Inventory
Option 2: Sales efficiency
Option 3: Sales Turnover
Option 4: Average Collection Period
Correct Answer: Average Age of Inventory
Solution : Inventory turnover can be used to calculate the average age of the inventory by dividing it by 365.
Hence the correct answer is option 1.
Question : The inventory turnover ratio can be used to determine?
Option 1: Sales effectiveness
Option 2: Average Age of Inventory
Option 4: Average Collection Period by dividing it into 365.
Question : Which of the following statements are correct with respect of the debt collection period?
Option 1: Increase in average collection period indicates the excessive blockage of funds with trade receivables which increases the chances of bad debts.
Option 2: A higher average collection period is thus, an indication of the inefficiency and negligency on the part of management.
Option 3: if there is decrease in average collection period, it indicates prompt payment by trade receivables which reduces the chances of bad debts.
Option 4: All of the above
Question : What is the significance of the Rigveda in the Vedic religion?
Option 1: It is a collection of philosophical teachings.
Option 2: It is a manual for rituals and sacrifices.
Option 3: It is a compilation of ancient hymns.
Option 4: It is a record of historical events.
Question : What is the significance of motivation in the directing process?
Option 1: It reduces the need for supervision
Option 2: It increases employee turnover
Option 3: It leads to decreased productivity
Option 4: It enhances employee performance
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