Which of the Following Increases When Accounts Receivable Is Sold

question 71

Multiple Choice

Which of the following increases when accounts receivable is sold?

• A)Current ratio
• B)Accounts receivable turnover
• C)Debt-to-equity ratio
• D)Days' sales in receivables

Learn how to compute key financial ratios such as current ratio, working capital, and quick ratio.

Acquire skills in journalizing various transactions including accrued expenses and payroll calculations.

Gain knowledge in analyzing and recording contingent liabilities related to environmental spills and litigation.

Understand methods to calculate and record employer's payroll taxes based on different scenarios.

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Definitions:

Descriptive Statistics

Statistical methods that summarize or describe a collection of data points, including measures like mean, median, and mode.

Null Hypothesis

A statistical hypothesis that indicates no effect or no difference in the context of scientific experiments, assuming the observation results from chance.

Control

The use of standardized procedures and conditions in scientific experiments to ensure that changes observed in an experiment are due to the manipulation of the independent variable.