In Scenario 8-2 Above,after Analyzing the Average Collection Period Ratio,you

question 114

Multiple Choice

In Scenario 8-2 above,after analyzing the average collection period ratio,you concluded that

• A) Denny has a problem since his number is so low.
• B) Denny may have overly restrictive credit policies.
• C) Denny has many uncollected accounts receivable.
• D) Denny's cash flow will soon be affected since his accounts receivables are not being paid.

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Definitions:

CISG

The United Nations Convention on Contracts for the International Sale of Goods is a treaty designed to provide a standardized framework for international trade.

Written Contract

A legally binding agreement between two or more parties that is put in written form and signed by those involved, specifying the terms and conditions of their arrangement.

Sale of Goods

A transaction between two parties where the seller transfers ownership of tangible personal property to the buyer for a price.

Auction Without Reserve

An auction at which the auctioneer cannot withdraw goods unless no bid is made within a reasonable time.