If Accounts Receivable Stays the Same,and Credit Sales Go Up

question 102

Multiple Choice

If accounts receivable stays the same,and credit sales go up:

• A) the average collection period will go up.
• B) the average collection period will go down.
• C) accounts receivable turnover will decrease.
• D) no changes will occur.

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Definitions:

Spring Specials Sale

Promotional discounts or deals offered during the spring season by retailers or service providers.

Latex Paint

Latex paint is a type of water-based paint that uses synthetic polymers as binders, known for its ease of application and clean up, as well as its flexibility and durability.

Increased

Describes a situation or quantity that has grown or become larger than before.

Increase

To become progressively greater in size, amount, number, or intensity.