If a Company Was Interested in Calculating How Long It

question 3

Multiple Choice

If a company was interested in calculating how long it takes to receive payment from customers,which of the calculations would they make?

• A) Trade receivables/sales revenue x 365
• B) Sales revenue/trade receivables x 365
• C) Trade payables/cost of sales x 365
• D) Cost of sales/trade payables x 365

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Definitions:

Completeness

In decision theory, a property that states every set of choices can be ranked in an order of preference.

Marginal Rate

Typically refers to the additional cost or benefit received from producing one more unit of a good or service.

Indifference Curve

A graph that shows combinations of goods between which a consumer is indifferent, meaning they derive the same level of satisfaction from each combination.

Preferences

Individual tastes or desires that influence choice behavior, guiding decisions in the face of scarcity.