A Clearinghouse Business That Matches Buyers and Sellers Is Called

question 36

Multiple Choice

A clearinghouse business that matches buyers and sellers is called a(n)

• A) electronic trader.
• B) electronic matchmaker.
• C) electronic exchange.
• D) exchange broker.
• E) product exchange.

Identify and calculate equivalent annual cost (EAC) for different assets to assist in asset selection decisions.

Recognize and evaluate the effects of sunk costs, opportunity costs, and erosion costs in project analysis.

Understand the application of pro forma financial statements in projecting future operations’ results.

Comprehend the process of calculating bid prices and the strategic considerations involved.

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Definitions:

Asset Management Ratios

Financial metrics used to assess how efficiently a company manages its assets to generate revenue, including turnover ratios for inventory, receivables, and fixed assets.

Average Collection Period

The average number of days it takes for a company to receive payments owed by its customers for credit sales.

Inventory Turnover

A financial metric indicating how many times a company has sold and replaced its inventory over a specific period.

Quick Ratio

Current assets less inventories divided by current liabilities. A financial ratio that measures a firm’s liquidity, the ability to pay its bills in the short run, without depending on converting inventory into cash. Also called the Acid Test.