As Part of Audit Planning,you Have Calculated Accounts Receivable Turnover

question 73

Multiple Choice

As part of audit planning,you have calculated accounts receivable turnover for the last five years and compared it to industry averages.Your client's accounts receivable has decreased by about 1.25 times in the current year,while the industry rate has improved.One possible cause of this lowered accounts receivable turnover is

• A)higher cost of goods sold.
• B)increased bad debt expenses.
• C)fictitious revenue.
• D)fictitious expenses.

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Definitions:

Harm Assessment

The evaluation of potential adverse effects caused by substances, activities, or environmental changes on humans, wildlife, or ecosystems.

Statistical Association

A measure of the relationship between two or more variables.

Toxin Exposure

Contact with or absorption of substances that can cause harm to living organisms.

Metastasis

The process by which cancer cells spread from the original tumor site to other parts of the body.