Goods Can Be Defined in Terms of Their Physical Attributes

question 147

True/False

Goods can be defined in terms of their physical attributes, but services cannot because they are intangible.

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Definitions:

Average Collection Period

This term refers to the average number of days it takes for a business to receive payments from its customers for invoices issued.

Accounts Receivable Turnover Ratio

A financial metric indicating how many times a company collects its average accounts receivable within a certain period.

Merchandise Inventory

The goods available for sale to customers by a retail or wholesale business, representing a significant asset on the balance sheet.

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets by comparing sales revenue to total assets.