Which of the Following Items Is a Measure of a Company's

question 95

Multiple Choice

Which of the following items is a measure of a company's ability to collect receivables?

• A)The days' sales in receivables
• B)The current ratio
• C)The inventory turnover ratio
• D)The acid-test ratio

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Definitions:

Boiling Point

The temperature at which a liquid's vapor pressure equals the external pressure surrounding it, causing the liquid to rapidly vaporize.

Kerosene Components

Kerosene components refer to the mixture of hydrocarbons derived from petroleum, used primarily as fuel in heating and aircraft engines.

Flammable Liquid

A liquid substance capable of catching fire and burning easily in the presence of an ignition source.

Light Gas Fraction

A portion of the distillate in petroleum refining that is composed of the lighter hydrocarbons, such as methane, ethane, propane, and butane.