If Trade Receivables Are Collected Quickly, It May Indicate Which

question 138

Multiple Choice

If trade receivables are collected quickly, it may indicate which of the following?

• A) The trade receivables turnover is low.
• B) The company's credit policies may be overly stringent.
• C) Credit is often granted to poor credit risks.
• D) The company is becoming more profitable.

---

Definitions:

Statistical Relationship

The association or connection between two or more variables, which can be determined through statistical analyses.

Negative Correlation

A statistical relationship between two variables where one variable increases as the other decreases.

Confounding Variables

Factors other than the independent variable that might cause changes in the dependent variable, potentially misleading the results of a study.

Original Variables

Fundamental or initial factors or conditions that can influence outcomes in scientific research or statistical analysis.