Which of These Indicates That a Firm Is Efficient

question 36

Multiple Choice

Which of these indicates that a firm is efficient?

• A) A high average collection period
• B) A high day's sales in inventories
• C) A low asset turnover
• D) A high inventory turnover

Accurately record and adjust prepaid expenses and unearned revenues in the accounting records.

Understand the process of closing the dividend account and its impact on the retained earnings.

Understand the process and purpose of preparing an adjusted trial balance.

Identify the role and composition of a worksheet in accounting.

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Definitions:

Needle

A slender, pointed instrument used for injecting substances into the body, drawing fluids from it, or passing surgical threads through tissues.

Expense Report

A documented report of money spent or incurred by an employee for business-related activities, which is typically submitted for reimbursement.

Educational Purposes

Intentions or activities aimed at learning, teaching, or academic improvement.

Reimbursed

Compensated or repaid for expenses that have been incurred.