Which of the Following Is Correct with Regard to the Various

question 148

Multiple Choice

Which of the following is correct with regard to the various modes of transportation?

• A) Water transportation is the least expensive,but slowest of the various modes.
• B) One of the disadvantages of air travel is that it increases packing and handling costs.
• C) Trucks are a particularly good choice for long-distance distribution and for less expensive products.
• D) Overall,trucks are the best way to transport goods.
• E) All of these.

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Definitions:

Credit Policy

The guidelines a company follows to determine the amount and terms of credit to extend to customers.

Net Sales

The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods, and discounts.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects its receivables or the speed of debt collection from customers.

Average Account Receivables

The average amount of money owed to a company by its customers for goods or services delivered on credit.