During the Year, Caltech Inc

question 4

Multiple Choice

During the year, Caltech Inc.'s accounts receivable turnover rate increased from 10 to 12 times. The company makes credit sales only with credit terms of 3/10, n/40. The best explanation for the increase is that

• A) the company's credit department did a better follow up with customers whose account balances became past due.
• B) the company has recently dropped its credit check policy.
• C) the company makes all customers pay cash instead of allowing purchases to be charged.
• D) the company has more customers at the end of the year than it had at the beginning of the year.

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Definitions:

Parasympathetic

Refers to the part of the autonomic nervous system that conserves energy by slowing the heart rate, increasing intestinal and gland activity, and regulating the relaxation response.

Endorphins

Natural, pain-relieving chemicals produced by the body, often released in response to stress or exercise, and associated with feelings of euphoria.

Morphine

A potent opiate analgesic drug derived from the opium poppy used to relieve severe pain.

Receptor Sites

Specific locations on cell membranes or within cells where specific substances like hormones, neurotransmitters, or drugs can bind and elicit a biological response.