An Increase in Accounts Receivable Turnover Due to an Increase

question 103

Multiple Choice

An increase in accounts receivable turnover due to an increase in collection efforts will

• A) decrease the firm's marginal investments in accounts receivable.
• B) decrease the firm's collection expense.
• C) increase the firm's bad debt expense.
• D) increase the firm's marginal investments in accounts receivable.

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Definitions:

Unemployment

The situation when people who are willing to work at prevailing wage rates cannot find employment.

Movement

In economic terms, it often refers to a change in price or quantity in response to market forces on a graph.

Opportunity Costs

The cost of forgoing the next best alternative when making a decision or choosing among options.

Inputs

Refers to the resources used in the production of goods and services, including labor, capital, and materials.