A High Accounts Receivable Turnover Rate May Indicate All of the Following

question 73

Multiple Choice

A high accounts receivable turnover rate may indicate all of the following except

• A)fast collection of accounts receivables.
• B)greater liquidity.
• C)credit terms that are too tight.
• D)inventory levels are high.

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Definitions:

Sketch Graph

The process of drawing a rough graph of a mathematical function or equation based on its key features, without the use of precise calculations.

Absolute Value

The distance of a number from zero on a number line, without considering direction.

Equation

An equation is a mathematical statement that asserts the equality of two expressions, often including variables and constants.

Sketch Graph

The process of roughly drawing a graph to represent a mathematical function or data set visually, highlighting its main features without precise calculations.