A(n) ________ Is Useful in Evaluating Credit Policies

question 97

Multiple Choice

A(n) ________ is useful in evaluating credit policies.

• A) average payment period
• B) current ratio
• C) average collection period
• D) inventory turnover ratio

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Definitions:

Contribution

The right of insurers (more than one) to share a loss where the policies so provide.

Insurers

Companies or entities that provide insurance coverage to individuals, businesses, or other organizations in exchange for premiums.

Co-insurance

An insurance arrangement where the risk is shared between the insurer and the insured, often requiring the insured to pay a specified percentage of the costs of a claim.

Utmost Good Faith

A principle requiring all parties in an agreement or contract to act honestly and not mislead or withhold critical information.