Peter's Pool House Has an Interval Measure of 51

question 169

Multiple Choice

Peter's Pool House has an interval measure of 51. This means that the Pool House has:

• A) To replace its inventory every 51 days.
• B) To wait for 7.16 days to collect its receivables after a sale is made.
• C) Enough cash to pay for 51 days of operating expenses.
• D) Sufficient current assets to operate the business for 7.16 days.
• E) Sufficient current assets to operate the business for 51 days.

---

Definitions:

Insignificant Influence

A financial accounting term used to describe an investor's inability to exert control or significant influence over the operating and financial policies of another company.

Stock Investment

The purchase of shares in a company with the expectation of earning a return through dividends, share price growth, or both.

Available-for-Sale Debt Securities

Debt investments not classified as held-to-maturity or trading securities, recorded at fair value on the balance sheet with unrealized gains or losses reported in other comprehensive income.

Fair Value

An estimate of the market price of an asset or liability, reflecting the value for which it could be bought or sold in a current transaction between willing parties.