Which of the Following Transactions Will Result in a Decrease

question 47

Multiple Choice

Which of the following transactions will result in a decrease in the receivables turnover ratio?

• A)The journal entry to record bad debt expense.
• B)Writing off an uncollectible account receivable.
• C)Selling inventory on account.
• D)Collecting an account receivable.

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Definitions:

Recover in Court

The process of obtaining a judicial remedy or compensation through legal proceedings.

Drawee

The party in a financial transaction who is directed to pay a specified amount of money on a check or draft.

Certify

The act of officially recognizing someone or something as having met a particular standard or criteria.

Federal Reserve

The central banking system of the United States, responsible for implementing monetary policy, supervising banks, and providing financial services.