The CEO of a Large Company Asks the Sales Manager

question 82

Multiple Choice

The CEO of a large company asks the sales manager to report the sales figures of the previous quarter. The manager immediately sends her the list of products sold in the previous quarter. These details do NOT qualify as good information because they are ________.

• A) too narrow in scope
• B) too expensive
• C) not timely
• D) not relevant
• E) too large

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Definitions:

Net Sales

Net sales are the total revenue from goods or services sold by a company, minus returns, allowances for damaged or missing goods, and discounts.

Average Accounts Receivable

The average amount of money owed to a company by its customers for goods or services provided on credit, over a specific period.

Acid-test Ratio

A financial ratio that measures a company’s ability to pay off its short-term liabilities with its quick assets, offering insight into financial stability.

Current Assets

Assets that are expected to be converted into cash, sold, or consumed within a year or within the normal operating cycle of a business.