Which of the Following Is a Sign That a Company

question 61

Multiple Choice

Which of the following is a sign that a company can quickly turn its receivables into cash?

• A)A low receivables turnover ratio.
• B)A high receivables turnover ratio.
• C)A high average collection period.
• D)Both a low receivables turnover ratio and a high average collection period.

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Definitions:

Excise Taxes

Taxes levied on specific goods, such as tobacco or alcohol, often to discourage their use or to raise revenue.

Taxation

The practice by which governments impose charges on citizens and corporate entities to fund public spending and services, playing a key role in economic policy and regulation.

Local Government

The administration of a particular town, city, county, or district with responsibility for providing services and enforcing regulations at a local level.

Expenditures

The action of spending funds or the amount spent on various items or services, including operational costs, investments, and personal spending.