The Bad-Debt Ratio Is the Ratio of Bad Debts to Total

question 54

True/False

The bad-debt ratio is the ratio of bad debts to total sales.

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Definitions:

Ratio Comparison

A method of analysis where financial ratios of a company are compared to industry benchmarks or the company's historical figures to assess performance.

Credit Manager

A professional responsible for granting credit to customers and managing the credit risk for a company.

Quick Ratio

A liquidity indicator that measures a company’s ability to pay off its current liabilities without relying on the sale of inventory by dividing liquid assets by current liabilities.

Return on Equity

A measure of a corporation's profitability relative to stockholders’ equity, indicating how effectively management uses investments to generate earnings growth.