Which of the Following Is an Example of a Capital

question 23

Multiple Choice

Which of the following is an example of a capital market instrument?

• A) Commercial paper.
• B) Preferred stock.
• C) U.S.Treasury bills.
• D) Banker's acceptances.
• E) Money market mutual funds.

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Definitions:

Average Collection Period

The average number of days it takes for a business to receive payments owed by its customers.

Net Credit Sales

The total value of sales made on credit minus returns and allowances, reflecting the actual credit sales revenue generated.

Accounts Receivable

Amounts owed to a company by customers for products or services that have been delivered but not yet paid for.

Average Collection Period

A financial metric that calculates the average number of days it takes for a company to receive payments from its customers.