A Decreasing Average Receivables Collection Period Could Be Associated with

question 34

Multiple Choice

A decreasing average receivables collection period could be associated with

• A) increasing sales.
• B) decreasing sales.
• C) decreasing accounts receivable.
• D) increasing sales and decreasing accounts receivable.

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Definitions:

Bond B

A reference to a specific bond investment, often denoted for classification or tracking purposes.

Current Yield

The annual income (interest or dividends) divided by the current price of the security, often used in assessing bonds and other fixed-income investments.

5 ½% Bond

A bond that pays a 5.5% interest rate to its holders, typically annually or semi-annually.

Yield To Maturity

The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.