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Les just bought a megaphone of root beer. As he drinks from the giant cup, he eventually becomes full. One of his friend's comments, "If you don't stop drinking that stuff, you will get sick." Les replies, "Hey, I bought it, and I am not going to waste one drop of it." Les's behavior best illustrates ________.
Accounts Receivable
Money owed to a business by its customers for goods or services that have been delivered but not yet paid for.
Average Collection Period
The average number of days it takes for a company to collect payments from its credit sales, a measure of the effectiveness of its credit and collection policies.
Year-End Balance
The final amount of money in an account at the conclusion of a financial year, after all transactions have been accounted for.
Forecasted Net Income
An estimate of a company's profit for a future period, calculated by projecting revenues and subtracting anticipated expenses.
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