The Higher the Amount of a Company's Accounts Receivable Turnover

question 51

Multiple Choice

The higher the amount of a company's accounts receivable turnover,

• A)the shorter time period it takes to collect a receivable.
• B)the more assets a company has tied up in receivables.
• C)the longer it takes a company to collect its receivables.
• D)the more likely a company will experience cash flow problems.

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Definitions:

Application Software

A program or group of programs designed for end-users to perform specific tasks, such as word processing, accounting, or database management.

Software Copies

Duplicates or reproductions of computer software, potentially unauthorized.

Software Licensing Agreements

Legal contracts that outline the terms and conditions under which a user may access and use a piece of software.

CIOs

Chief Information Officers, senior executives responsible for managing and implementing information and computer technologies within an organization.