Which of the Following Situations Is Most Likely to Explain

question 71

Multiple Choice

Which of the following situations is most likely to explain an accounts receivable turnover that is lower than the industry norm?

• A)The company makes less credit sales than industry.
• B)The company gives customers less time to pay than its competitors.
• C)The company has been selling inferior products to competitors.
• D)The company is systematically under-estimating bad debts.

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Definitions:

Cochlea

The inner ear; the bony tube that contains the basilar membrane and the organ of Corti.

Milligram

A unit of mass equal to one thousandth of a gram, often used to measure medication or chemical substances.

Desensitized

A reduction in emotional responsiveness to a stimulus after repeated exposure to it, often leading to a decrease in intense emotional reactions.

Stimulation

The action of arousing interest, enthusiasm, or excitement in something.