If Accounts Receivable Stays the Same, and Credit Sales Go

question 92

Multiple Choice

If accounts receivable stays the same, and credit sales go up

• A) the average collection period will go up.
• B) the average collection period will go down.
• C) accounts receivable turnover will decrease.
• D) the average collection period will go down and accounts receivable turnover will decrease.

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Definitions:

Product Development

The process of bringing a new product to market, from ideation through to design, development, and launch.

Brand's Equity

Refers to the value and strength of a brand that has been built over time through consumer recognition, perceptions, and loyalty.

Consumer Loyalty

The likelihood of customers to continue buying from a particular brand or company due to satisfaction, positive experiences, or perceived value.

Perceived Value

The customer's assessment of the worth or utility of a product or service, based on its perceived benefits versus cost.