F5 Measuring efficiency Flashcards
1
Q
what is an efficiency ratio?
A
a measure of how the internal managment are utilising and controlling the business’ financial assets
2
Q
what is trade receivable days?
A
a measure of how long it takes on average for customers to pay the business for goods and services it has purchased on credit
3
Q
what is trade payable days?
A
a measure of ow long it takes on average for the business to pay for supplies it has purchased on credit
