Which of the Following Is Not a Valid Quantitative Measure

question 62

Multiple Choice

Which of the following is not a valid quantitative measure of accounts receivable collection policies?

• A) Average collection period
• B) Aging of accounts receivables
• C) Ratio of debt to equity
• D) Ratio of bad debts to credit sales

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Definitions:

Express Warranties

Explicit guarantees provided by a seller regarding the condition, functionality, or performance of a product.

Non-material Term

Aspects of a contract or agreement that do not constitute its essential substance, often concerning minor or secondary details.

Equitable Requirement

A condition or stipulation based on fairness, justice, and reasonableness, often considered in legal contexts.

Lease Contract

A legal agreement in which one party rents property, services, or goods from another party for a specified period of time.