Which of the Following Ratios Indicates How Rapidly the Firm's

question 57

Multiple Choice

Which of the following ratios indicates how rapidly the firm's credit accounts are being collected?

• A) Debt ratio
• B) Gross profit margin
• C) Accounts receivable turnover ratio
• D) Fixed asset turnover

Identify and classify types of assets and liabilities in a business context.

Understand the concept and usage of commercial paper and other short-term financing instruments.

Recognize the role of collateral in securing loans and its implications for businesses.

Understand the mechanisms of trade credits and lines of credit as methods of financing.

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Definitions:

17th Amendment

An amendment to the U.S. Constitution ratified in 1913 that established the direct election of U.S. senators by popular vote.

Direct Election

A system of choosing political officials where voters directly cast ballots for the person or political party they desire to see in office.

Senators

Members of the Senate, one of the two houses of the legislature in various countries, including the United States, elected to represent states or territories and participate in law-making.

Constitution

The supreme law of the United States, establishing the framework of the national government, its powers, and the rights of its citizens.