Choose the Word or Phrase in [ ] Which Will

question 119

Multiple Choice

Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You are buying a large amount of merchandise through the mail from a dealer several hundred miles from you with whom you have never dealt before.The dealer will probably require that you pay him with a cashiers or [travelers | certified] check.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Working Capital

The gap between what a firm owns in the short term (assets) and what it owes (liabilities), revealing its efficiency in operations and financial stability in the near term.

Accounts Receivable Turnover

A financial ratio that measures how many times a business can collect its average accounts receivable during a period, indicating how efficiently it manages credit extended to customers.

Average Sale Period

The average time it takes for a company to complete a sales cycle from the initial contact to the final sale.

Average Sale Period

A financial metric that calculates the average time it takes for a company to sell its inventory, indicating the efficiency of sales and inventory management.