Quiz Ch 05 – Return Measurement Disregarding Compounding
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
Which measure of returns does NOT incorporate the effect of compounding?
Which measure of returns does NOT incorporate the effect of compounding?
Accounts receivable is a type of credit that involves customers signing an agreement to pay a specific amount, including interest, to the business at a future date.
The quick ratio is a less strict gauge of a company’s capacity to settle its current debts in comparison to the current ratio.
Companies face the possibility of uncollectible receivables when they sell on credit.
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 meant by the term “excess return”?
What is the term for the measure of an entity’s capacity to pay its current liabilities immediately