Harmonization of IASB and FASB Standards Is Now Being Called

question 50

Multiple Choice

Harmonization of IASB and FASB standards is now being called:

• A)benchmarking.
• B)conformity.
• C)uniformity.
• D)convergence.

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Definitions:

Receivables Turnover Ratio

A financial metric used to measure how efficiently a company collects cash from its credit sales by dividing net credit sales by average accounts receivable.

Credit Sales

Sales made by a business that allow the buyer to pay at a later date, typically recorded as accounts receivable.

Cost Of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including material and labor expenses.

Liquidity Ratio

A financial metric used to determine how quickly a company can pay off its short-term liabilities with its liquid assets.