Which of These Is an Advantage of Bank Overdrafts as a Form

question 50

Multiple Choice

Which of these is an advantage of bank overdrafts as a form of finance?

• A)They are legally payable on demand.
• B)They are easy to arrange.
• C)They are a flexible form of borrowing.
• D)Both B and C.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects revenue from its customers by comparing net credit sales to average accounts receivable.

Liquidity

A measure of how quickly and easily an asset can be converted into cash without significantly affecting its price.

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.

Charge Customer

The process of recording or billing a customer for goods sold or services rendered, reflecting an obligation for payment.