Return on Sales,the Efficiency Component of Return on Investment (ROI),is

question 62

Multiple Choice

Return on sales,the efficiency component of return on investment (ROI) ,is:

• A)20%.
• B)80%.
• C)25%.
• D)125%.

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Definitions:

Collection Procedures

Established methods used by businesses to follow up on and collect unpaid debts from customers.

Accounts Receivable

Amounts owed to a company by its customers for goods or services that have been delivered but not yet paid for.

ACP

Average Collection Period, indicating the average number of days it takes for a company to receive payments from its customers.

Credit Policy

A set of guidelines a company follows to determine credit terms for customers, including who is granted credit and the terms of payment.