If a Company Attempts to Artificially Inflate Current Sales and Net

question 33

Multiple Choice

If a company attempts to artificially inflate current sales and net income by shipping goods that have not been ordered,we would expect that the receivables turnover ratio will:

• A)rise and the days-to-collect will rise,all other things equal.
• B)rise and the days-to-collect will fall,all other things equal.
• C)fall and the days-to-collect will fall,all other things equal.
• D)fall and the days-to-collect will rise,all other things equal.

---

Definitions:

Quality-Of-Life

An individual's overall assessment of their well-being, encompassing both physical health and emotional satisfaction.

Mercy Killing

The act of ending the life of a person or animal in a painless or minimally painful way, for the purpose of relieving suffering, often debated ethically and legally.

National Legislation

Laws and legal provisions enacted by the national government or legislative body of a country.

Selling Of Human Organs

The act of trading human organs for transplantation or other medical purposes, often considered illegal and unethical.