An Increase in Accounts Receivable Increases Profitability Because the Receivables

question 17

True/False

An increase in accounts receivable increases profitability because the receivables are a source of funds.​

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Definitions:

Compounded Monthly

The process of calculating interest on the initial principal and the accumulated interest from previous periods monthly.

Amortized

The steady decrease of an owed sum through consistent payments towards both the interest and the principal over a set duration.

Total Debt Service Ratio

A debt measurement ratio that calculates an individual's total debt payments relative to their gross income.

Gross Monthly Income

The total amount of income earned in a month before any deductions or taxes are applied.