The Presence of an Intermediary Substantially Reduces the Number of ____

question 126

Multiple Choice

The presence of an intermediary substantially reduces the number of ____ faced by both consumers and businesses.

• A)risks
• B)expenditures
• C)unpleasantries
• D)contacts

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Definitions:

Stretching Payables

Extending the period to pay bills as long as possible without incurring penalties, to improve short-term liquidity.

Current Liabilities

Current liabilities are a company's debts or obligations that are due to be paid to creditors within one year.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations.

Times Interest Earned

A financial ratio that measures a company's ability to meet its interest obligations, calculated as earnings before interest and taxes divided by interest expense.