Notes or Accounts Receivables That Result from Sales Transactions Are

question 53

Multiple Choice

Notes or accounts receivables that result from sales transactions are often called

• A) sales receivables.
• B) non-trade receivables.
• C) trade receivables.
• D) merchandise receivables.

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Definitions:

Capital Intensity Ratio

A measure of how much capital is used in production, often expressed as the ratio of total assets to sales revenue.

Full Capacity

The maximum level of production or output that a facility can achieve under normal operating conditions.

Operating Capacity

The maximum output a company can produce under normal working conditions.

Earnings Retention Ratio

The proportion of net income that a company retains to reinvest in its business rather than distributing it to shareholders as dividends.