561FinanceMedium
Which of the following statement is TRUE regarding debt?
AUnpaid debt can result in bankruptcy or financial failure.
MCQs
Read every question, see the correct answer, and understand the explanation at your own pace. Study mode has no timer and no negative marking.
Correct answer
A. Unpaid debt can result in bankruptcy or financial failure.
Explanation
Unpaid debt can result in bankruptcy or financial failure. is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Rises
Explanation
Rises is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. Coefficient of variation
Explanation
Coefficient of variation is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. current market price
Explanation
current market price is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Liquidity
Explanation
Liquidity is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. high growth prospect
Explanation
high growth prospect is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
C. Primary market
Explanation
Primary market is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
D. 73 days
Explanation
The average collection period is calculated by dividing the average balance of accounts receivable by total net credit sales for the period and multiplying the quotient by the number of days in the period. use the following formula: (Average Receivables/Net Sales)*365 150,000/750,000*365 = 73 days _________________________________________________ Net sales=750,000 A/C receivables= 150,000 days in a year =365 Collection period= (A/C Receivables/ net sales)*days in a year = (150,000/750,000)*365= 73 days
Correct answer
A. Capital Rationing
Explanation
Capital Rationing is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.
Correct answer
B. Tangible asset
Explanation
Tangible asset is the correct answer. Review the question and compare it with the other choices to remember this fact for future exams.