Indicate Whether Each of the Following Statements Is True or False

question 46

True/False

Indicate whether each of the following statements is true or false.
a)The higher the accounts receivable turnover ratio, the longer is a company's cash collection period.b)The accounts receivable turnover ratio is measured as the amount of sales divided by net accounts receivable.c)The average days to collect accounts receivable is measured as 365 divided by the accounts receivable turnover ratio.d)Longer collection periods decrease the costs of collecting from customers.e)A higher average collection period is desirable.

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Definitions:

Referent Power

A form of influence that derives from the attractiveness and charisma of the leader, where followers identify with or admire the leader.

Interpersonal Attraction

The force that draws people together and contributes to the desire for a continued relationship, whether platonic or romantic.

Elusive Power

A form of influence that is difficult to define, grasp, or directly observe.

Power

Involves the capacity or ability of an individual or group to influence or control the actions of others in a desired direction.