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:

Network Effects

Network effects occur when the value of a product or service increases as more people use it, making it more attractive and beneficial to users.

Simultaneous Consumption

The same-time derivation of utility from some product by a large number of consumers.

Specialized Inputs

Resources or materials that are tailored for specific tasks or industries, enhancing the efficiency and quality of production.

Rent-Seeking Behavior

Activities by individuals or firms aimed at securing economic gain without contributing to productivity, typically through political lobbying for favorable regulations or monopolistic advantages.