What Is a Possible Reason for Accounts Receivable Turnover to Increase

question 164

Multiple Choice

What is a possible reason for accounts receivable turnover to increase from one year to the next year

• A) Decreased credit sales during a recession.
• B) Write-off uncollectible receivables.
• C) Granting credit to customers with lower credit quality.
• D) Improved collection process.

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Definitions:

Separately Stated

Items on a tax return or financial statement that are listed individually to identify their specific impact on taxation or financial analysis.

Partnership Interest

An ownership share in a partnership that represents a partial right to its assets, income, and gains.

Outside Basis

Refers to a partner's or investor's tax basis in an individual partnership interest or investment, including the initial investment amount plus any additional contributions and adjusted by allocations of income or loss and distributions.

Inside Basis

The cost basis of an asset inside a partnership or other entity, reflecting its original cost plus adjustments.