What Is the Ratio of Net Annual Credit Sales to Average

question 153

Multiple Choice

What is the ratio of net annual credit sales to average accounts receivable (which measures the speed with which customers pay what they owe to the company) ?

• A) sales liquidity ratio
• B) sales to cash ratio
• C) bad debt expenses ratio
• D) accounts receivable turnover ratio

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Definitions:

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Essential elements or conditions of a contract that are fundamental to the agreement's performance.

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A body of law that outlines the rules for legally binding agreements between parties, focusing on principles of mutual consent and exchange.

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