Which One of the Following Ratios Indicates the Average Number

question 41

Multiple Choice

Which one of the following ratios indicates the average number of days that sales are outstanding?

• A) average payment period
• B) average collection period
• C) quick ratio
• D) interest coverage

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Definitions:

Equilibrium Quantity

The quantity of goods or services supplied is equal to the quantity demanded at the market equilibrium price.

Commodity X

A placeholder term typically used to represent any generic good or service in economic models and discussions.

Demand Equation

A mathematical representation of the relationship between the demand for a good and its price, often also considering other determinants of demand.

Equilibrium Price

The price at which the quantity of a good or service demanded equals the quantity supplied, leading to market equilibrium.