Which of the Following Items Is Generally NOT Included in a Directors

question 3

Multiple Choice

Which of the following items is generally NOT included in a directors' report to shareholders?

• A) Names of directors
• B) Principal activities of the company
• C) Budgeted net profit for following year
• D) Significant changes in the company's state of affairs

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Definitions:

Accounts Payable

The total sum a business must pay to its suppliers or creditors for products and services obtained on credit.

Inventory

Goods and materials that a business holds for the ultimate goal of resale, production, or utilization in manufacturing.

Receivable Turnover

A financial metric indicating how efficiently a company collects revenue from its credit customers by measuring the number of times average accounts receivable are collected during a period.

Inventory Turnover

A ratio showing how many times a company's inventory is sold and replaced over a specific period, indicating the efficiency of inventory management.