Which of the Following Ratios Increases When Cash Is Collected

question 65

Multiple Choice

Which of the following ratios increases when cash is collected on an account receivable?

• A)Current.
• B)Quick.
• C)Return on assets.
• D)Receivable turnover ratio.

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Definitions:

Drive Theories

Psychological theories suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Motivation

The psychological factors or driving forces that compel or prompt an individual to act in a certain manner.

Homeostatic

Pertaining to homeostasis, which is the process by which living organisms maintain a stable internal environment despite changes in external conditions.

Maslow's Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.