Which of the Following Is Most Likely to Be Considered

question 35

Multiple Choice

Which of the following is most likely to be considered a sale of goods to which the UCC applies?

• A) A dentist places a crown over a patient's tooth.
• B) A gas station sells and installs a new battery in a car.
• C) A hairstylist uses a crème rinse in styling a client's hair.
• D) A contractor builds a house for a landowner.

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Definitions:

Total Asset Turnover

A financial ratio that measures a company's ability to generate sales from its assets, indicating operational efficiency.

Accounts Receivable Turnover

A financial ratio indicating how many times a company's accounts receivable are collected during a certain period, reflecting its efficiency in extending credit and collecting debts.

Times Interest Earned Ratio

A financial ratio that measures a company's ability to honor its debt payments by comparing its interest expense to its operating income.

Operating Cycle

The duration between the purchase of inventory by a business and the receipt of cash from accounts receivable, indicating the speed at which a company turns inventory into cash.