A High Receivables Turnover Ratio May Indicate That

question 4

Multiple Choice

A high receivables turnover ratio may indicate that

• A) customers are making payments quickly.
• B) a large portion of the company's sales are on credit.
• C) many customers are not paying their receivables.
• D) the company's sales have increased.

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Definitions:

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The frequency at which a new event occurs in a specified population over a particular period of time.

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The threshold below which a result is considered statistically significant, indicating that observed differences are not likely due to chance alone.