Matching

question 71

Multiple Choice

Matching
Identify whether the following investor questions are associated with (a) primary or (b) secondary financial reporting objectives.
-How much revenue will Apple generate during the time period in which I own the shares?

• A)primary financial reporting objective
• B)secondary financial reporting objective

---

Definitions:

Solvency

The ability of an entity to pay its long-term debts and financial obligations as they become due.

Cash Ratio

A liquidity ratio that measures a company's ability to repay short-term obligations with cash and cash equivalents alone.

Days To Collect

A financial metric that estimates the average number of days it takes a company to collect payment after a sale has been made, also known as the accounts receivable turnover in days.

Receivables

Money owed to a company by its customers or other parties for goods or services provided on credit, recorded as an asset on the balance sheet.