Accounts Receivable Turnover Measures

question 156

Multiple Choice

Accounts receivable turnover measures:

• A) How often a company converts its average accounts receivable into cash during the period and the relationship of cash sales to credit sales.
• B) How often a company converts its average accounts receivable into cash during the period.
• C) The relationship of cash sales to credit sales.
• D) How long it takes to sell inventory on credit.
• E) How long it takes to sell inventory on credit and how often a company converts its average accounts receivable into cash during the period.

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Definitions:

Cartel

An agreement among competing firms to control prices, production, and market shares, often to maximize collective profits by reducing competition.

Organization of Sellers

A collective or group of sellers or producers that aims to promote common interests, often including market and price controls.

Supply Decisions

Choices made by firms regarding the quantity of goods or services to produce and offer for sale.

Ford

Ford refers to the Ford Motor Company, a major American automaker known for its mass production of automobiles and the pioneering of assembly line manufacturing techniques.