The Ability of a Company to Collect Receivables Is Measured

question 50

Multiple Choice

The ability of a company to collect receivables is measured by which ratio?

• A)Inventory turnover ratio
• B)Day's sales in receivables
• C)Current ratio
• D)Acid-test ratio

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Definitions:

Tragedy of the Commons

A situation in which individual users, acting independently according to their own self-interest, deplete or spoil shared resources, even though it is contrary to the group's long-term interests.

Private Good

A product or service that is individually consumed and can be easily excluded from non-payers, making it rivalrous in consumption.

Subsidize

Financial support given by the government or another organization to reduce the cost of goods, services, or activities, often to encourage development or consumption.

Basic Research

Investigative study aimed at gaining a deeper and theoretical understanding of fundamental principles without immediate commercial objectives.