A High Average Days Outstanding for Accounts Receivable Could Indicate

question 4

Multiple Choice

A high average days outstanding for accounts receivable could indicate that:

• A) few customers are defaulting on their debts.
• B) the company is making collections from its customers very quickly.
• C) the company is making collections from its customers very slowly.
• D) a small proportion of the company's sales are credit sales.

---

Definitions:

Supply Curve

A graphical depiction that shows the relationship between the price of a good or service and the quantity of that good or service that suppliers are willing and able to provide, at given prices.

Supply Curve

A graphical representation showing the relationship between the quantity of goods that producers are willing to sell and the price of those goods.

Determinant Of Supply

A factor that influences the quantity of a good or service that producers are willing to offer for sale at a given price over a period.

Current Production

The total amount of goods and services produced by an economy or firm at the present time.