Which of the Following Best Describes a Collection Period Ratio

question 37

Multiple Choice

Which of the following best describes a collection period ratio?

• A) Long-term liability divided by working capital
• B) Accounts receivable divided by average daily credit sales
• C) Net income divided by average shareholders' equity
• D) Net profit divided by net sales

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Definitions:

Postconventional Morality

The stage of moral development characterized by an individual's reasoning based on personal principles of justice and rights.

Ethical Principles

Fundamental guidelines that influence moral decision making and conduct.

Preconventional Stage

The first level of Kohlberg's stages of moral development, where behavior is driven by the desire to avoid punishment and seek rewards.

Postconventional Morality

A stage of moral development in which individuals base their moral judgments on principles that transcend societal and legal rules.