The Ratio That Indicates How Many Days It Takes to Turn

question 85

Multiple Choice

The ratio that indicates how many days it takes to turn accounts receivable into cash is the:

• A) accounts receivable turnover ratio.
• B) average turnover ratio.
• C) average collection period.
• D) quick assets turnover ratio.

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Definitions:

Business Cycle

The progression of economic activity through expansion, peak, contraction, and trough phases.

Business Cycle

The natural fluctuation of the economy between periods of expansion (growth) and contraction (recession).

Market Basket

A collection of goods and services used to track inflation, consumer spending, or the cost of living in a specific area.

CPI

Consumer Price Index, a measure that examines the weighted average of prices of a basket of consumer goods and services, used to estimate inflation.