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 does a low Working Capital Turnover Ratio indicate?

Option 1: Indication of inefficiency of working capital management.

Option 2: Indication of efficiency of working capital management

Option 3: Proper mutilation of resources

Option 4: None of the above

Question : What does a low Working Capital Turnover Ratio indicate?

Option 1: Indication of inefficiency of working capital management.

Option 2: Indication of efficiency of working capital management

Option 3: Proper mutilation of resources

Option 4: None of the above

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

Question : The inventory turnover ratio can be used to determine?

Option 1: Sales effectiveness

Option 2: Average Age of Inventory

Option 3: Sales Turnover

Option 4: Average Collection Period by dividing it into 365.