Which of These Indicates an Improvement in the Management of Accounts

question 54

Multiple Choice

Which of these indicates an improvement in the management of accounts receivable?

• A) An extension of the time taken to collect debts to beyond the normal credit period.
• B) A increase in the average collection time for accounts receivable.
• C) A change in the average collection period from 36 days to 39 days.
• D) A change in the number of times debtors are turned over per year from 10.29 times to 11.61 times.

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Definitions:

Horizontal Axis

Represents the x-axis on a chart or graph, typically used to plot time, frequencies, or any continuous variable.

Vertical Axis

In graphing, the y-axis which typically represents the range of values for a dependent variable or measure of interest.

Line Graph

A graphical representation of data where individual data points connected by straight lines show trends over time or category.

Baseline

The initial set of measurements or observations taken in a study, used as a reference point for assessing change or effects of interventions.