A Company Which Offers "N/15" Credit Terms Assuming 360 Days

question 53

True/False

A company which offers "n/15" credit terms assuming 360 days in year would be expected to have a receivable turnover of about 24 times a year.

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Definitions:

Planning Budget

A budget prepared for a specific level of activity, used as a tool for decision making and planning.

Net Operating Income

A company's income after operating expenses are subtracted but before deducting interest and taxes, reflecting the profitability from core operations.

Planning Budget

A budget created for a specific level of activity, it helps in planning and controlling costs based on projected operational activities.

Net Operating Income

The profit a company makes from its normal business operations, calculated by subtracting operating expenses from operating revenues.