The Long-Term Benefit of a Company Reaching and Successfully Selling

question 55

Multiple Choice

The long-term benefit of a company reaching and successfully selling its product to teens is that:

• A) teen consumption strongly influences adult consumption.
• B) many teens have high disposable incomes.
• C) many teens may be the deciders for certain types of products.
• D) teens are most interested in sports and fitness.

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Definitions:

Total Current Assets

The value of all assets that are expected to be converted into cash, sold, or consumed within one year or within the normal operating cycle of the business.

Journalize Transactions

The process of recording financial transactions in the journal as part of the accounting cycle.

Accounts Receivable Turnover

A financial ratio that measures how many times a company can turn its accounts receivable into cash during a period.

Days' Sales in Receivables

A financial metric that calculates the average number of days it takes a company to collect payment after a sale has been made.