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    Completly Lost's Avatar
    Completly Lost Posts: 4, Reputation: 1
    New Member

    Jan 31, 2009, 10:25 PM
    Terms of Sale
    3.Terms of Sale. Indicate which firm of each pair you would expect to grant shorter or longer credit periods:

    a. One firm sells hardware; the other sells bread.

    b. One firmís customers have an inventory turnover ratio of 10; the otherís customers have turnover of 15.

    c. One firm sells mainly to electric utilities; the other to fashion boutiques.

    This is what I think but I am doubting myself.
    a. hardware-shorter
    b. ratio of 10-longer
    c. electric utilities-longer
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member

    Feb 1, 2009, 10:55 AM

    Give your reasoning (i.e. why) for choosing your answers and someone should give you some guidance.

    Also please do not post homework our test questions here and see this link:

    Ask Me Help Desk - Announcements in Forum : Accounting

    I am asking this question be moved to homework.

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