Which of the Following Is the Same as Savings Ratio

question 15

Multiple Choice

Which of the following is the same as savings ratio that you will try to attain over a specific time period?

• A) Surplus.
• B) Deficit.
• C) Targeted savings ratio.
• D) Assets.

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Definitions:

Sales

The cumulative amount of money made by a business from selling its goods or services.

Average Collection Period

The average collection period is the average amount of time it takes for a business to receive payments owed by its customers for sales made on credit.

Accounts Receivable

Money owed to a business by its customers for goods or services delivered but not yet paid for.

Sales on Account

Transactions where goods or services are delivered with payment to be made at a later date, typically recorded as accounts receivable.