Which Ratio Represents How Many Times During the Year a Company

question 32

Multiple Choice

Which ratio represents how many times during the year a company is collecting its receivables?

• A) Average collection period for accounts receivable
• B) Accounts receivable turnover
• C) Inventory turnover
• D) Fixed asset turnover

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Definitions:

Implied in Fact Contracts

Contracts arising from the conduct of the parties, indicating a mutual intention to contract, without explicit verbal agreement.

Quasi Contract

An obligation imposed by law to prevent unjust enrichment, even though no actual agreement exists between the parties involved.

Obligation Imposed

A duty or responsibility enforced by law, regulation, or agreement.

Contract Formation

The process whereby parties agree upon and establish the terms of a contract, leading to a binding legal agreement.