If the Average Trade Receivables That a fiRm Holds Decreases

question 115

Multiple Choice

If the average trade receivables that a firm holds decreases without any decrease in credit sales, the operating cycle will:

• A)stay the same because of no sales change.
• B)stay the same because cash collections are sooner, and it will affect the cash cycle only.
• C)decreases because days sales outstanding decreases.
• D)stay the same because trade receivables are not in the operating cycle.
• E)have an unknown effect.

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Definitions:

Panic Disorder

A psychiatric disorder characterized by sudden episodes of intense fear or anxiety and physical symptoms based on a perceived threat rather than imminent danger.

Diagnosis

The identification of the nature and cause of an illness or other problem by examination of the symptoms and signs.

Relapse Rates

The proportion or percentage of individuals who, after recovery from a condition or disease, return to a state of illness or problem behavior within a certain period.

Treatments

Methods and practices used in the alleviation, relief, or cure of diseases, illnesses, or medical conditions.