The Following Are Examples of Implied Promises for a Local

question 30

Multiple Choice

The following are examples of implied promises for a local car racing event except

• A)promise of an exciting,fun evening
• B)a $1.00 donation for each ticket purchased to support sports at the local high school
• C)ticket refund if the event is cancelled due to weather
• D)awesome fireworks display after the races

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Definitions:

Accounts Receivable Turnover

A financial ratio indicating how many times a company's receivables are turned over and collected in cash during a period.

Current Ratio

A liquidity ratio that measures a company’s ability to pay short-term and long-term obligations, calculated as current assets divided by current liabilities.

Total Current Assets

The sum of all assets likely to be converted into cash within a year, including cash, marketable securities, accounts receivable, and inventory.

Total Current Liabilities

These are obligations that a company is required to pay within one year or within the normal operating cycle.