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12.7 Which ratios should be used to help answer each of these questions? ...

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Accounting

12.7 Which ratios should be used to help answer each of these questions?

  1. How efficient is an entity in using its assets to produce sales?

  2. How long does it take for customers to pay their accounts?

  3. How many dollars of profit were generated for each dollar of sales?

  4. How liquid is this entity?

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