Use the Table for the Question(s)below

question 53

Multiple Choice

Use the table for the question(s) below.
Consider the following returns:
-The Correlation between Stock X's and Stock Z's returns is closest to:

• A)0.71.
• B)0.60.
• C)0.62.
• D)0.05.

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Definitions:

Net Sales

Total revenues from sales transactions minus returns, allowances, and discounts.

Allowance Method

A method of accounting for bad debts that involves estimating and recording uncollectible accounts receivable as an expense.

Write-Off

An accounting action whereby the value of a bad debt or an asset is reduced to zero, acknowledging it as a loss.

Average Collection Period

The average time it takes for a company to receive payments from its customers.