Use the Tables for the Question(s)below

question 81

Multiple Choice

Use the tables for the question(s) below.
Balance Sheet

-The balance sheet and income statement of a particular firm are shown above.What does the accounts receivable days ratio tell you about this company?

• A)It takes on average about 4 weeks to collect payment from its customers.
• B)It takes on average about 6 weeks to collect payment from its customers.
• C)It takes on average about 7 weeks to collect payment from its customers.
• D)It takes on average about 8 weeks to collect payment from its customers.
• E)It takes on average about 11 weeks to collect payment from its customers.

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Definitions:

Small Business Administration

A U.S. governmental agency that provides support to entrepreneurs and small businesses through loans, grants, and counseling.

Conventional Commercial Financing

Traditional forms of business funding provided by banks and financial institutions, including loans and lines of credit.

Financial Service Provider

A business or individual that offers money management services including investment, loan, deposit, and transfer services.

Home-Based Business

A business operated from the owner's home, often requiring minimal capital to start and allowing for flexible work schedules.