Which of the Following Occurs When Purchased Goods Are in Some

question 57

Multiple Choice

Which of the following occurs when purchased goods are in some kind of storage under the control of a third party,such as a warehouseman?

• A) A goods-in-bailment contract
• B) A simple delivery contract
• C) An average delivery contract
• D) A conditional sales contract
• E) A goods-in-transfer contract

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Definitions:

Accounts Receivable Turnover

A financial metric indicating how many times a company collects its average accounts receivable balance in a year.

Cash Cycle

The duration of time it takes for a company to convert its investments in inventory back into cash through sales.

Cash Cycle

The period between the outlay of cash for goods/services and the return of cash through customer payments, reflecting the liquidity and efficiency of a company.

Accounts Payable Period

The average time it takes for a business to pay off its suppliers after receiving inventory or services.