Which of the Following Measures the Number of Days That

question 41

Multiple Choice

Which of the following measures the number of days that the firm holds accounts payable before it has to extend cash to buy raw materials?

• A) accounts receivable turnover
• B) average collection period
• C) average payment period
• D) accounts payable turnover

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Definitions:

Marketing Consultant

A professional who advises businesses on strategies to promote and sell products or services more effectively.

Food Expenditures

The amount of money spent on food items by individuals, households, or organizations.

Significance Level

A probability threshold set before testing hypotheses, below which the observed results are deemed significant enough to reject the null hypothesis.

Pooled Variance

Acombined estimate of variance for two or more groups in a sample, assuming that the populations have equal variances.