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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Definitions:

Loop of Henle

A section of the nephron in the kidney which plays a crucial role in the concentration of urine.

Solute Concentration

The measure of the amount of solute dissolved in a solvent or solution.

Kidney Medulla

The kidney medulla is the innermost part of the kidney, composed of renal pyramids, and is responsible for concentrating urine and maintaining water and salt balance in the body.

Vasa Recta

refers to the series of straight blood vessels in the kidney that serve a crucial role in the process of urine concentration.