You Have $1 to Spend on a Vending Machine Snack

question 153

Multiple Choice

You have $1 to spend on a vending machine snack.A bag of chips will cost you $1 and a candy bar will also cost you $1.If you choose the bag of chips,the opportunity cost of buying the chips is:

• A)$1 plus the enjoyment you would have received from the candy bar.
• B)$2 minus the enjoyment you received from the bag of chips.
• C)$1.
• D)the enjoyment you would have received from the candy bar.

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Definitions:

Short-Term Note Payable

A debt obligation due within one year or within the normal operating cycle of the business, used to finance short-term financing needs.

Receivables Turnover Ratio

A financial metric used to assess how efficiently a company collects cash from its credit sales by dividing total credit sales by the average accounts receivable.

Payments Quickly

Payments quickly refers to the process of settling financial transactions or obligations in a brief period of time, enhancing liquidity and cash flow management.

Average Collection Period

The average number of days it takes for a company to receive payments from its credit customers.