If Management Wishes to Know How Long It Takes to Collect

question 68

Multiple Choice

If management wishes to know how long it takes to collect from a charge customer, they could use the:

• A) rate of return on total assets.
• B) average collection period.
• C) acid test ratio.
• D) current ratio.

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Definitions:

Vertical Structure

An organizational structure where hierarchy and rank order define how communication, power, and responsibilities are distributed, typically in a top-down manner.

Horizontal Structure

An organizational structure with few or no levels of middle management between staff and executives, promoting greater team collaboration.

Classical Conditioning

A training method where two signals are consistently linked together; initially, the response is triggered by the second signal but over time, it is the first signal alone that provokes the reaction.

Attitude-Behavior Relationship

The connection between an individual's beliefs or feelings towards an object, person, or situation, and how they subsequently behave.