The Annual Returns (In Percent)for a Sample of Stocks in the Technology

question 87

Multiple Choice

The annual returns (in percent) for a sample of stocks in the technology industry over the past year are as follows: 4.2 -9.4 2.8 -16.0 -6.6.
The average return is the closest to _____.

• A) -6.6
• B) -5
• C) 0
• D) 2.8

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Definitions:

Aging of Accounts Receivable

The process of categorizing accounts receivable by their due dates to estimate the amount of bad debts.

Estimated Net Realizable Value

The anticipated fair value of an asset in terms of the amount for which it could be sold, minus the estimated costs of sale or disposal.

Percentage of Net Sales

A financial ratio that represents certain expenses, liabilities, or profits as a percentage of the net sales, used to analyze the financial health and performance of a business.

Bad Debts

Amounts owed to a company that are considered uncollectible, typically due to the debtor's inability to pay.