Which of the Following Items Is a Measure of a Company's

question 95

Multiple Choice

Which of the following items is a measure of a company's ability to collect receivables?

• A)The days' sales in receivables
• B)The current ratio
• C)The inventory turnover ratio
• D)The acid-test ratio

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Definitions:

Maximum Profit

The highest possible financial gain that a business can achieve under given market conditions and with its current resources.

Monopolist

A monopolist is a sole producer or supplier of a particular good or service in the market, having significant control over pricing and market conditions.

Marginal Revenue

Marginal Revenue is the additional income gained from selling one more unit of a good or service, crucial for understanding profit maximization.

Second Unit

An additional or backup unit or system that serves as a replacement or supplement to the original.