Since Receivables and Payables Both Result from Sales Transactions, a Firm

question 8

True/False

Since receivables and payables both result from sales transactions, a firm with a high receivables-to-sales ratio must also have a high payables-to-sales ratio.

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Definitions:

Common Law

A body of law developed from custom or judicial decisions in English and U.S. courts, and not by a legislature.

Judicial Decisions

Rulings made by courts interpreting laws, which can establish legal precedents and influence future legal cases.

Legislature

The governmental body empowered to make, amend, or repeal laws within a state or country.

Synthesize

To combine various elements or aspects from different sources to form a coherent whole or create something new.