Quiz Ch 05 – T/F Note Principal Amount and Creditor’s Role
Financial Accounting
Thomas, Tietz, and Harrison
12th Edition
The principal amount of a note represents the amount that the creditor lends to the debtor.
The principal amount of a note represents the amount that the creditor lends to the debtor.
Accounts receivable, also known as trade receivables, refer to the outstanding payments that a business is owed by its customers for the goods or services provided.
Days’ sales outstanding informs a company of the duration it takes to receive payments on its average receivables level.
Company management, not investors, utilizes ratios to assess the financial well-being of a company.
What is the term for the measure of an entity’s capacity to pay its current liabilities immediately