Assume That Charmin and Barker Are Two Retailers Selling Different

question 44

Multiple Choice

Assume that Charmin and Barker are two retailers selling different goods.Charmin reports a days to sell ratio of 6 and Barker reports a days to sell ratio of 64.What types of merchandise are Charmin and Barker likely to sell,given their measures of days to sell?

• A) Charmin sells clothing and Barker sells wine.
• B) Charmin sells consumer electronics and Barker sells gasoline.
• C) Charmin sells footwear and Barker sells consumer electronics.
• D) Charmin sells groceries and Barker sells autos..

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Definitions:

Readily Marketable

Assets that are considered readily marketable are those that can easily be converted into cash because there is a high demand and an active market for them.

Short-Term Investments

Financial assets that are expected to be converted into cash or sold within a year.

Seasonal Fluctuations

Variations in business activity, sales, or performance that occur regularly at certain times of the year due to the season.

Debt Securities

Financial tools that signify an investor lending money to a borrower, commonly consisting of bonds, notes, and bills.