A High Accounts Receivable Turnover Indicates

question 174

Multiple Choice

A high accounts receivable turnover indicates

• 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:

Equilibrium Quantity

The amount of products or services available and sought after at the market's balance price.

Supply Curve

A graphical representation that shows the relationship between the price of a good and the quantity of the good that producers are willing to supply.

Buyer's Value

The maximum amount that a buyer is willing to pay for a good or service, reflecting the personal value the buyer attributes to the product.

Seller's Cost

The total expenses incurred by a seller in producing and selling a product, including manufacturing, labor, and material costs.