Price-To-Sales Ratio Is Still Considered the Predominant Firm Valuation Technique

question 208

True/False

Price-to-sales ratio is still considered the predominant firm valuation technique.

---

Definitions:

Credit Sales

Sales in which the customer is allowed to pay at a later date.

Operating Expenses

Costs associated with the regular functioning of a business, not including cost of goods sold but encompassing elements like rent, utilities, and employee salaries.

Sales Returns

Transactions where customers return previously purchased merchandise, leading to a reversal of revenue previously recognized and a refund or credit issued to the customer.

Accounts Receivable

Receivables from clients or customers for goods sold or services performed by a business, awaiting payment.