Most Developing Countries Are in Trouble Whenever Oil Prices Rise

question 147

Multiple Choice

Most developing countries are in trouble whenever oil prices rise because _____.

• A)they are the major exporters of oil and their export income falls
• B)it causes political instability in the countries
• C)it causes an increase in frictional unemployment
• D)higher oil prices drain the developing countries of foreign exchange
• E)it causes deflation in domestic economies.

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Definitions:

Days in Receivables

Days in Receivables, often referred to as Days Sales Outstanding (DSO), measures the average number of days it takes a company to collect payment after a sale has been made.

Accounts Receivable

This term refers to the money that is owed to a company by its customers for goods or services that have been delivered but not yet paid for.

Credit Sales

Sales made by a business where payment is delayed, allowing the buyer to purchase goods or services on credit.

Month of Sale

The specific month in which a sale transaction was completed or recognized for accounting or reporting purposes.