If Business Conditions Are Stable, an Increase in the Number

question 71

Multiple Choice

If business conditions are stable, an increase in the number of accounts receivable turnover from one year to the next (based upon a company's accounts receivable at year-end) might indicate:

• A)a stiffening of the company's credit policies.
• B)a significant decrease in the volume of sales of the second year.
• C)that the second year's sales were made at lower prices than the first year's sales.
• D)that a longer discount period and a more distant due date were extended to customers in the second year.
• E)None of these choices are correct.

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Definitions:

Type A

A personality profile characterized by competitiveness, urgency, aggression, and a high level of ambition, often linked to a higher risk of heart disease.

Easy-Going

Describes a person or attitude that is relaxed, tolerant, and not easily upset or stressed.

Competitive

Characterized by or engaging in rivalry or competition, often striving to be more successful or better than others.

Type A Behaviour

A personality pattern characterized by high levels of competitiveness, aggressiveness, impatience, and a sense of urgency.