Which of the Following Is Not a Valid Quantitative Measure

question 94

Multiple Choice

Which of the following is not a valid quantitative measure for accounts receivable collection policies?

• A) Average collection period
• B) Aging of accounts receivables
• C) Ratio of debt to equity
• D) Ratio of bad debts to credit sales

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Definitions:

Natural Monopolies

Situations in which a single firm can supply a good or service to an entire market more efficiently than multiple firms could, often due to high infrastructure costs making competition impractical.

Allocative Efficiency

An economic state where resources are allocated in a way that maximizes the net benefit to society, considering both production and desires of consumers.

Simultaneous Consumption

A consumption pattern in which a product or service is consumed by multiple users at the same time without reducing its availability to others.