Which of the Following Is Not a Valid Quantitative Measure

question 94

Multiple Choice

Which of the following is not a valid quantitative measure for accounts receivable collection policies?

• A) Average collection period
• B) Aging of accounts receivables
• C) Ratio of debt to equity
• D) Ratio of bad debts to credit sales

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Definitions:

Income Statement

A financial statement that shows a company's financial performance over a specific period by summarizing its revenues, expenses, and net income or loss.

Finished Goods Inventory

The total value of all completed products that are ready for sale but have not yet been sold.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold by a company, including materials and labor.

Cost of Goods Manufactured

The total cost accrued in making products completed during an accounting period, including labor, material, and overhead costs.