Which One of the Following Statements Is Correct If a Firm

question 73

Multiple Choice

Which one of the following statements is correct if a firm has a receivables turnover measure of 10?

• A) It takes a firm 10 days to collect payment from its customers.
• B) It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.
• C) It takes a firm 36.5 days to pay its creditors.
• D) The firm has an average collection period of 36.5 days.
• E) The firm has ten times more in accounts receivable than it does in cash.

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Definitions:

Hearing Impairment

A partial or total inability to hear sound in one or both ears, ranging from mild to profound hearing loss.

Degenerative Joint Disease

Another term for osteoarthritis, a type of arthritis that occurs when the protective cartilage on the ends of bones wears down over time.

Osteoarthritis

Arthritis characterized by erosion of articular cartilage, which becomes soft, frayed, and thinned with eburnation of subchondral bone and outgrowths of marginal osteophytes; pain and loss of function result; mainly affects weight-bearing joints and is more common in women, the overweight, and older people.

Depression

A psychological condition marked by a continuous low mood or lack of enthusiasm for activities, leading to considerable disruption in everyday functioning.