If a Company Attempts to Artificially Inflate Current Sales and Net

question 146

Multiple Choice

If a company attempts to artificially inflate current sales and net income by shipping goods that have not been ordered,we would expect that the receivables turnover ratio will:

• A)increase and the days-to-collect will increase,all other things being equal.
• B)increase and the days-to-collect will decrease,all other things being equal.
• C)decrease and the days-to-collect will decrease,all other things being equal.
• D)decrease and the days-to-collect will increase,all other things being equal.

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