A firm's total investment in receivables depends primarily on the firm's:
A. total sales and cash discount period.
B. cash to credit sales ratio.
C. bad debt ratio.
D.average collection period and amount of credit sales.
E. amount of credit sales and cash discount percentage.
Ans: D. average collection period and amount of credit sales.
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If the output of a firm is increased by one unit, the revenue addition is called
A. total revenue. B. average revenue. C. marginal revenue. D. economic profit.
Cap Space
What will be an ideal response?
A dollar spent to buy a product ends up being a dollar received by the seller of the product. This statement explains why GDP includes ______.
a. marginal expenditure and total income b. total expenditure and total income c. total expenditure and marginal income d. marginal expenditure and marginal income
A monopoly earns total revenue of $5,000 when it sells 500 units of output and total revenue of $5,400 when it sells 600 units of output. Thus, the marginal revenue of the 600th unit is $9.
Answer the following statement true (T) or false (F)