In Order to Get Out of Debt,it Is Recommended That

question 125

Multiple Choice

In order to get out of debt,it is recommended that you do all of the following except:

• A)cut up your credit cards.
• B)start living on a cash-only basis.
• C)try to lower your monthly bills.
• D)take out a cash advance on one card and pay off the others with the cash received.

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Definitions:

Accounts Receivable Turnover

A financial metric that measures how efficiently a company collects on its receivables or the speed of their credit sale conversions into cash.

Receivables Collected

The amount of money received from customers in payment of accounts receivable during a given period.

Allowance Method

An accounting technique used to estimate uncollectible accounts receivable and adjust the balance of accounts.

Uncollectible Accounts

Accounts receivable that are considered unlikely to be collected and written off as a loss.