Which Ratio Indicates the Effectiveness of a Company's Credit Extension

question 92

Multiple Choice

Which ratio indicates the effectiveness of a company's credit extension policy?

• A) inventory turnover
• B) accounts payable turnover
• C) days sales outstanding
• D) days inventory on hand

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Definitions:

Coat-Tail Effect

The phenomenon where a popular candidate can boost the electoral chances of other candidates on the same party ticket.

Popular Candidate

A candidate who is widely favored or preferred by the majority of voters or the public in an election.

Party Ticket

A single election ballot listing all the candidates of a specific political party for various positions.

Presidential Elections

The process by which a country's citizens select their head of state or leader, typically through voting.