Which One of the Following Statements Is Correct If a Firm

question 73

Multiple Choice

Which one of the following statements is correct if a firm has a receivables turnover measure of 10?

• A) It takes a firm 10 days to collect payment from its customers.
• B) It takes a firm 36.5 days to sell its inventory and collect the payment from the sale.
• C) It takes a firm 36.5 days to pay its creditors.
• D) The firm has an average collection period of 36.5 days.
• E) The firm has ten times more in accounts receivable than it does in cash.

Identify the differences between special types of contracts, such as oral contracts, auctions, and sales of goods.

Distinguish between the legal concepts of title, risk of loss, and insurable interest.

Understand the implications of fraud and voidable title in sales transactions.

Comprehend the requirements and effects of firm offers and contracts within the UCC.

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Definitions:

Formal Operations

A stage in Piaget's theory of cognitive development where individuals gain the ability to think abstractly and logically.

Systematically

In a methodical and organized manner, often involving a clear, step-by-step procedure.

Concrete Operations

Piaget’s term for coordinated mental actions that allow children to mentally combine, separate, order, and transform concrete objects and events that the children experience directly.

Formal Operational Thinking

A stage of cognitive development in Piaget's theory, where individuals gain the ability to think abstractly, reason logically, and organize thoughts coherently.