A Decrease in Accounts Receivable Turnover Ratio Is Indicative Of

question 18

Multiple Choice

A decrease in accounts receivable turnover ratio is indicative of:

• A)an increase in sales revenue.
• B)slower-selling inventory.
• C)an increase in accounts receivable.
• D)a decline in cost of goods solD.Accounts receivable turnover = Net sales/Average accounts receivable.If the accounts receivable turnover decreases,this may be the result of a decrease in net sales or an increase in average accounts receivable.

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Definitions:

Placebo

A substance with no therapeutic effect, often used in clinical trials as a control to test the effectiveness of drugs.

Placebo Injection

A treatment using a substance that has no therapeutic effect, used as a control in testing new drugs.

Control Group

In experimental research, a group of subjects that does not receive the treatment or intervention being studied and is used as a benchmark to measure the effects of the treatment.

Inactive Substance

A substance that has no intended therapeutic effects, often used as a control in experiments.