Which of the Following Measures the Number of Days That

question 41

Multiple Choice

Which of the following measures the number of days that the firm holds accounts payable before it has to extend cash to buy raw materials?

• A) accounts receivable turnover
• B) average collection period
• C) average payment period
• D) accounts payable turnover

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Definitions:

Incidence of a Tax

The incidence of a tax refers to the distribution of the tax's economic burden among different stakeholders, such as consumers and producers.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price.

Price Ceiling

A legally imposed maximum price on goods or services, intended to keep prices affordable for consumers.

Shortage/Surplus

A surplus is the opposite of a shortage, occurring when the supply of a product or service exceeds its demand in a market.