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:

Scatterplot

A visual diagram that illustrates the connection between two numerical variables.

Quantitative Variables

Variables that express numerical amounts, with meaningful mathematical operations possible on their values.

Covariance

A statistical measure indicating the direction of the linear relationship between two variables; can be positive, negative, or zero.

Best-Fitting Regression Line

The line that most accurately represents the relationship between the dependent and independent variables in regression analysis, minimizing the discrepancies between observed and predicted values.