A High Accounts Receivable Turnover Ratio Indicates

question 34

Multiple Choice

A high accounts receivable turnover ratio indicates:

• A) the company's sales are increasing.
• B) a large proportion of the company's sales are on credit.
• C) customers are making payments very quickly.
• D) the company is taking longer to sell inventory.

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Definitions:

Chemical Facilities

Industrial or commercial sites where chemicals are produced, processed, or stored.

Federal Government

The national government of a federal country, such as the United States, which has specific powers granted by the Constitution, distinct from state governments.

Corporation Social Responsibility

Practices and policies undertaken by corporations to positively impact societal, environmental, and economic domains.

Corporate Profits

The earnings of a corporation after all expenses, taxes, and costs have been deducted from total revenue.