Which Financial Statement(s)do You Need to Calculate the Accounts Receivable

question 151

Multiple Choice

Which financial statement(s) do you need to calculate the accounts receivable turnover ratio?

• A)only the income statement
• B)only the balance sheet
• C)both the income statement and the balance sheet
• D)both the statement of cash flows and the income statement

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Definitions:

Unsystematic Risk

The risk of price changes in a company's stock due to factors specific to the company, as opposed to market-wide factors.

Treasury Bills

Short-term U.S. government debt obligations maturing in one year or less, considered a safe and liquid investment.

Risky Portfolio

A collection of investments that has a higher standard deviation, but potentially higher returns.

Unsystematic Portion

The segment of risk in an investment portfolio that can be mitigated through diversification, specific to individual securities.