​If a Firm Collects Its Accounts Receivable

question 54

Multiple Choice

​If a firm collects its accounts receivable,

• A) ​the current ratio increases
• B) ​inventory turnover increases
• C) ​the average collection period (days sales outstanding) is reduced
• D) ​inventory is reduced

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Definitions:

Serratus Anterior

A muscle on the side of the chest that assists in the upward movement of the arms and stabilizes the scapula.

Biceps Femoris

A thigh muscle belonging to the hamstrings group, responsible for bending the knee and extending the thigh.

Deltoid Muscle

The muscle that caps the shoulder, involved in arm rotation and preventing dislocation of the shoulder joint.

Biceps Brachii

A muscle located in the upper arm that is responsible for flexing the forearm at the elbow.