The Ratio That Provides an Estimate of the Number of Days

question 70

Multiple Choice

The ratio that provides an estimate of the number of days, on average, that it takes for customers to pay their account is the:

• A)acid-test ratio.
• B)accounts receivable turnover.
• C)days' sales in receivables.
• D)current ratio.

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Definitions:

High Price

A situation where the cost of a good or service is considered to be above the average or expected price.

Low Price

A situation where the cost of a good or service is relatively minimal compared to similar goods, often due to high supply, low demand, or competitive strategies.

Tit-For-Tat Strategy

A cooperative strategy in game theory where a player in a competition responds to an opponent's action with similar action, often used to enforce cooperative behavior.

Weekly Profit

The total income a business generates in one week after all expenses have been subtracted.