_____ Indicates How Fast a Firm Is Collecting the Credit

question 110

Multiple Choice

_____ indicates how fast a firm is collecting the credit amount extended by a firm to its customers.

• A) Payables turnover
• B) Receivables turnover
• C) Assets turnover
• D) Inventory turnover

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Definitions:

Liabilities

Financial obligations or debts that a company or individual owes to others, which need to be settled over time by transferring economic benefits.

Closed-End Funds

A type of investment fund with a fixed number of shares, traded on the stock exchange, unlike open-end funds which continuously issue new shares.

Premium

The amount by which the price of a financial instrument, such as an insurance policy or bond, exceeds its face value or nominal cost.

NAV

Net Asset Value; the total value of a fund's assets minus its liabilities, often used in the context of mutual funds.