The Claims of Creditors Against the Assets Are

question 15

Multiple Choice

The claims of creditors against the assets are:

• A)expenses.
• B)revenues.
• C)liabilities.
• D)owner's equity.

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Definitions:

Gross Profit

Gross profit refers to the difference between revenue and the cost of goods sold before administrative, overhead, and other expenses.

Receivables Turnover Ratio

A financial metric that measures a company's effectiveness in extending credit and collecting debts, calculated by dividing net credit sales by the average accounts receivable.

Net Sales

The amount of sales revenue remaining after deducting returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable

Funds that customers owe to a business for products or services that have been received but remain unpaid.