Suppose That Person X and Person Y Live Close to Each

question 83

Multiple Choice

Suppose that Person X and Person Y live close to each other and run into each other nearly every day. Compared to most people, their chances of becoming friends are ____, and their chances of becoming enemies are ____.

• A)higher; much higher still
• B)higher; about as high
• C)higher; average
• D)higher; lower

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Definitions:

Days To Pay Payables

An accounting metric that calculates the average number of days it takes a company to pay its invoices from suppliers, indicating how effectively a company is managing its outgoing cash flow.

Quick Ratio

A measure of a company's ability to meet its short-term obligations with its most liquid assets, calculated as (Cash + Marketable Securities + Accounts Receivable) / Current Liabilities.

Current Ratio

A ratio indicating how well a company can cover its short-term dues.

Receivable Turnover Ratio

A financial metric that measures how efficiently a company collects cash from its credit sales by comparing net credit sales with the average accounts receivable.