Of the Following Statements About a Day Trader, Which Is

question 13

Multiple Choice

Of the following statements about a day trader, which is not correct?

• A) They have a short-term focus.
• B) They may buy and sell on the same day.
• C) They are more risk averse than most investors.
• D) Day trading may be their career.

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Definitions:

Net Purchases

Net purchases are the total amount of purchases made by a business after subtracting returns, allowances, and discounts.

Cash Conversion Cycle

A measurement that calculates the duration required for a business to transform its inventory investments and additional resources into cash flows resulting from sales.

Accounts Receivable

Money owed to a business by its customers for goods or services provided on credit.

Accounts Payable

Accounts payable are amounts a company owes to suppliers for items or services purchased on credit; it is a current liability on the balance sheet.