A firm's age of accounts receivable:
A) measures the average time between credit-based sales and the collection of payments for those sales.
B) is likely to be greater for firms within the same industry with more generous credit terms.
C) is in part a function of the type of industry in which the firm operates.
D) All of the above.
D
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In a sales contract the seller wanted the closing to take pace before the end of the year. Which clause should the sellr include in the contract to insure punctual performance?
A. "Hold-harmless" clause. B. "Rescission" clause. C. "Time is of the essence" clause. D. "As is" clause.
Sue's office building was damaged by a fire caused by a careless tenant. After paying Sue for the loss, the insurance company sued the tenant to recover its loss. This suit is based on the principle of
A) warranty. B) insurable interest. C) utmost good faith. D) subrogation.