If a Company Has N/90-Credit Terms, You Would Expect Its

question 124

Multiple Choice

If a company has n/90-credit terms, you would expect its Accounts Receivable turnover to be:

• A)12.
• B) 4.
• C) 2.
• D) 1.

---

Definitions:

Balance Sheet

A financial statement that summarizes a company's assets, liabilities, and shareholders' equity at a particular point in time, providing insight into its financial health.

Earnings Before

A financial metric that typically specifies a certain earnings figure before deductions are made, such as Earnings Before Interest and Taxes (EBIT).

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in a net profit or loss.

Financing Charges

Interest or other fees charged by a lender on the principal amount loaned, affecting the total cost of a loan.