Which of the Following Statements About the Interpretation of the Receivables

question 158

Multiple Choice

Which of the following statements about the interpretation of the receivables turnover ratio is not correct?

• A) Analysts often interpret a sudden increase in the receivables turnover ratio as a signal of a developing problem.
• B) The smaller the receivables turnover ratio the larger the days to collect will be.
• C) A change in the receivables turnover ratio may indicate a change in the company's credit granting policies.
• D) A change in the receivables turnover ratio may indicate a change in economic conditions.

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Definitions:

Hydrophobic

Characteristic of molecules or parts of molecules that repel water or do not mix with water.

1-butanol

An organic compound, part of the alcohol family, with the formula C4H9OH, characterized by a four-carbon chain.

(2S,4R)-4-propylhexane-2-thiol

A specific chiral molecule indicated by its IUPAC name, highlighting its stereochemistry and functional groups.

(2R,4S)-4-propylhexane-2-thiol

A chiral molecule specified by its configuration, comprising a six-carbon chain with a propyl group and a thiol group at specific positions.