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A(n) __________ is one that is considered fair and equitable.
Accounts Receivable Turnover
A financial ratio indicating how quickly a company collects cash from credit sales by measuring the number of times receivables are collected over a period.
Net Sales
Total revenue from sales minus returns, allowances, and discounts.
Average Collection Period
A financial metric used to evaluate the average number of days a company takes to collect payments from its credit sales.
Acid-test Ratio
A stringent indicator of a company's liquidity, calculated by dividing liquid assets by current liabilities, to determine if it can meet short-term obligations.
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