Which of the Following Is the Best Definition of Accounts

question 370

Multiple Choice

Which of the following is the best definition of accounts receivable period?

• A) The time between receipt of inventory and payment for it.
• B) A secured short-term loan that involves either the assignment or factoring of receivables
• C) The time between sale of inventory and collection of the receivable.
• D) Costs that rise with increases in the level of investment in current assets.
• E) A forecast of cash receipts and disbursements for the next planning period.

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Definitions:

Mean

The mean is the mathematical average of a set of numbers or measurements, obtained by adding them together and dividing by the number of observations.

Estimator

A guideline or equation that approximates a characteristic of an entire population by analyzing data from a subset of it.

Point Estimate

A single value or statistic that serves as the best guess or estimate of a population parameter based on sample data.

Interval Estimate

An estimate of a population parameter that specifies a range of possible values within which the parameter is expected to lie, usually expressed with a degree of confidence.