An Increase in the Receivables Turnover Means That

question 12

Multiple Choice

An increase in the receivables turnover means that:

• A) The majority of customers are paying slower.
• B) The prices of items purchased are rising.
• C) The days' sales in receivables are rising.
• D) Profit margins are rising.
• E) Customers are paying their bills faster.

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Definitions:

Balance Theory

A theory in social psychology that suggests individuals strive for harmony and consistency in their relationships and beliefs, leading them to change their attitudes when they feel imbalance.

Tension

A state of mental or emotional strain resulting from challenging or demanding circumstances.

Procedures

Established ways of doing things, including steps and actions taken to accomplish tasks, typically outlined to maintain consistency and efficiency.

Positive Inequity

A situation in social psychology where an individual perceives that they are receiving more than they believe they deserve compared to others, impacting motivation and satisfaction.