What Is a Possible Reason for Accounts Receivable Turnover to Increase

question 37

Multiple Choice

What is a possible reason for accounts receivable turnover to increase from one year to the next year?

• A) Improved collection process.
• B) Granting credit to customers with lower credit quality.
• C) Decreased credit sales during a recession.
• D) Write-off uncollectible receivables.

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Definitions:

Credit for The Elderly

A tax credit available to elderly taxpayers or those who are permanently and totally disabled, to reduce their income tax liability.

Education Credits

Financial incentives in the form of tax credits for taxpayers who have incurred education expenses, aimed at reducing the cost of education.

Qualified Expenses

Expenses deemed deductible or eligible for tax-advantaged treatment under various IRS rules.

Gross Income

The total amount of income earned by an individual or entity before any deductions or taxes are applied.