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Which is not included in the group?Select one:a.Asset Turn overb.Business turn overc.Inventory turn overd.Average payment period

Question

Which is not included in the group?

Select one:

  • a. Asset Turn over
  • b. Business turn over
  • c. Inventory turn over
  • d. Average payment period
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Solution

Break Down the Problem

  1. Identify the common theme among the provided options.
  2. Determine the odd one out based on the theme.

Relevant Concepts

  1. Asset Turnover: Measures how efficiently a company uses its assets to generate sales.
  2. Business Turnover: Refers to the total revenue generated by the business over a specific period.
  3. Inventory Turnover: Indicates how many times inventory is sold or used in a given period.
  4. Average Payment Period: This metric reflects the average time taken by a company to pay its suppliers.

Analysis and Detail

  1. The first three options (Asset Turnover, Business Turnover, Inventory Turnover) are all related to sales performance and efficiency metrics for how a business manages its resources in relation to sales revenue.
  2. In contrast, the Average Payment Period is a liquidity measure that pertains to how quickly a company pays its suppliers, making it less related to sales turnover.

Verify and Summarize

The first three metrics measure aspects of revenue generation, whereas the Average Payment Period focuses on payment practices within a company's financial management.

Final Answer

Average payment period is not included in the group.

This problem has been solved

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