Hopewell's Accounts Receivable Turnover Ratio Is 6

question 68

Multiple Choice

Hopewell's accounts receivable turnover ratio is 6.5, and their credit terms are 60 days.Which of the following statements is true?

• A)They are collecting faster than their credit terms.
• B)They are collecting more slowly than their credit terms.
• C)They should offer discounts to encourage customers to pay on time.
• D)They should increase their allowance for uncollectibles.

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Definitions:

Fearful

Fearful denotes a feeling of anxiety or apprehension caused by the presence or anticipation of danger.

Apathy

A lack of interest, enthusiasm, or concern towards emotional, social, or physical life.

Authoritarian Parents

A parenting style characterized by high demands and low responsiveness, where parents exert high levels of control over their children with little reciprocal communication.

Coercive

Pertaining to employing intimidation or physical power to coerce someone into doing something or to ensure obedience.