If Accounts Receivable Are 20% of Sales and the Level

question 5

True/False

If accounts receivable are 20% of sales and the level of sales doubles, the percent of sales says that accounts receivable will be 40% of sales.​

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Definitions:

Seriation

Placing objects in an order or series according to a property or trait.

Linear Thinking

A thought process that follows a straight, direct path to reach a conclusion or solution, often focusing on sequential steps.

Causality

The relationship between a cause and its effect, where one event is understood to be a consequence of the other.

Sophisticated

Having a refined knowledge of the world, complex or developed in a way that is not immediately obvious.