Company a Has a Receivables Turnover of 8

question 154

Multiple Choice

Company A has a receivables turnover of 8.0.Company B has a receivables turnover of 10.0.Which of the following statements is correct?

• A)Company A collects its receivables faster than Company B.
• B)Company B collects its receivables faster than Company A.
• C)Company A makes more sales on account than Company B.
• D)Company B makes more sales on account than Company A.

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Definitions:

Imagined Community

A concept that refers to how members of a nation envision themselves as part of a large community, despite having no direct interaction with most other members, as proposed by Benedict Anderson.

Artificially Created Borders

Boundaries established by human decisions rather than natural features, often resulting in social, political, or economic implications.

African Slave Trade

The forced transportation and enslavement of African people primarily to the Americas from the 16th to the 19th centuries, a foundational element of global economic and social systems of inequality.

Bacon's Rebellion

A 1676 armed rebellion in the Virginia Colony, led by Nathaniel Bacon against the colonial government, reflecting early tensions between European settlers and Indigenous populations, and economic discontent.