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CTP · Question #300
(Topic 3) Company ABC has undergone substantial system enhancements in order to take advantage of B2B efficiencies. To encourage its trading partners, ABC has offered a 1.5% discount to those who…
The correct answer is D. cash turnover ratio. Topic 4, Volume D
Manage Treasury Operations
Question
- (Topic 3)
Company ABC has undergone substantial system enhancements in order to take advantage of B2B efficiencies. To encourage its trading partners, ABC has offered a 1.5% discount to those who allow ABC to debit their bank account electronically on the day the product is delivered. The greater number of trading partners who agree to this arrangement, the greater improvement Company ABC will see in its:
Options
- Adays' inventory.
- Bcash flow to total debt.
- Cdays' payables.
- Dcash turnover ratio.
How the community answered
(29 responses)- A14% (4)
- B3% (1)
- C7% (2)
- D76% (22)
Explanation
Topic 4, Volume D
Topics
#B2B payments#electronic debits#cash turnover ratio#working capital efficiency
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