The Acid- Test Ratio Measures

question 25

Multiple Choice

The acid- test ratio measures:

• A)how many days it takes, on average, to sell the inventory.
• B)how many days it takes, on average, to collect receivables.
• C)the number of times per year a company sells goods and collects receivables.
• D)how well a company can pay its current liabilities with its most liquid current assets.

Understand the consultative selling approach and its impact on customer relationships.

Recognize the components of the sales call planning process.

Grasp the significance of SMART objectives in sales call planning and execution.

Learn the strategies for becoming a creative problem solver in sales.

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Definitions:

Inflation Rate

The percentage rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling.

Quantitative Easing

A monetary policy used by central banks to increase the money supply by buying government securities or other securities from the market.

Central Bank

A national bank that provides financial and banking services for its country's government and commercial banking system and implements monetary policy.

Economic Growth

An increase in the production of goods and services in an economy over time, typically measured as the percentage increase in real GDP.