Which Ratio Measures the Number of Times a Firm Lends

question 16

Multiple Choice

Which ratio measures the number of times a firm lends money to customers,collects that money,and relends it within a year?

• A)Total asset turnover
• B)Days' sales in receivables
• C)Total debt ratio
• D)Receivables turnover
• E)Quick ratio

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Definitions:

Prototypes

Early models or samples of a product built to test a concept or process, used for demonstrations and feedback before final production.

Discovery

The process of finding information, places, or objects, especially for the first time, or the act of unveiling something not previously known.

Percentage of Ad Spend Method

A budgeting technique for advertising in which the budget is set based on a fixed percentage of the company’s sales or projected sales, making it a simple and commonly used method for allocating advertising funds.

Competitive Parity Method

A budgeting method where a company sets its advertising and marketing budget based on the spending of its competitors.