If a Company's Accounts Receivable Turnover Is Increasing,the Average Collection

question 56

Multiple Choice

If a company's accounts receivable turnover is increasing,the average collection period:

• A) is going up slightly.
• B) is going down.
• C) could be moving in either direction.
• D) is going up by a significant amount.

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Definitions:

Rate of Movement

The speed at which a certain object or substance moves through space or a medium.

Unconsolidated

Referring to sediments or materials that are loosely held together or not cemented, often allowing for the easy movement of water or air.

Weathered Bedrock

The result of bedrock being broken down by physical, chemical, or biological weathering processes, often leading to soil formation.

Terracing

The practice of shaping steep terrain to provide flat areas suitable for agriculture or ranching, or to protect soil from erosion.