Which of the Following Statements Is/are True Regarding the Receivables

question 105

Multiple Choice

Which of the following statements is/are true regarding the receivables turnover ratio?

• A) It is used to assess receivables' liquidity.
• B) It measures the number of times, on average, that receivables are collected during the period.
• C) It is calculated by dividing average sales by gross receivables outstanding during the year.
• D) Both A and B are correct.

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Definitions:

Categorical Syllogisms

A kind of logical argument that involves two premises and a conclusion, each statement beginning with "all", "no", or "some", referring to the relationships between categories.

Unstated Conclusion

A conclusion that is implied within an argument but not explicitly expressed.

Scripted Television

Television content consisting of narrative works that are written and prepared before filming or performance.

Expensive Show

A display, performance, or event that involves a significant financial cost.