Which of the Following Is a Recommended Method Used to Figure

question 8

Multiple Choice

Which of the following is a recommended method used to figure the accounts receivable ratio?

• A)Divide the current accounts receivable balance by the average monthly accounts payable. 
• B)Divide the current accounts receivable balance by the average monthly gross charges. 
• C)Divide the current accounts receivable balance by the average weekly charges. 
• D)Divide the current accounts receivable balance by the average daily gross charges.

---

Definitions:

Market

A place or platform where buyers and sellers come together to trade goods, services, or financial instruments.

Monopoly

A market structure characterized by a single seller, selling a unique product in the market with restrictions on the entry of new firms.

Law of Demand

An economic principle stating that as the price of a good or service increases, consumer demand for the good or service will decrease, and vice versa, holding all else constant.

Prices

The amount of money required to purchase goods or services, typically set by supply and demand dynamics in the market.