The Days to Collect Receivables Increased from 32 Days Last

question 198

Multiple Choice

The days to collect receivables increased from 32 days last year to 48 days this year.Which of the following statements is correct?

• A)The company is likely to see its Bad Debt Expense decrease.
• B)The company is becoming more efficient at collecting payment.
• C)The receivables turnover rate must have increased from last year to this year.
• D)The receivables turnover rate decreased from approximately 11.4 to 7.6 from last year to this year.

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Definitions:

Gordon Allport

A psychologist known for his theory of personality that emphasized the uniqueness of the individual and the concept of personal traits.

Personality Theory

A system of concepts, assumptions, ideas, and principles proposed to explain the variations in personality among individuals.

Psychoanalytic Theory

A theory of personality and therapeutic technique that attributes thoughts and actions to unconscious motives and conflicts, developed by Sigmund Freud.

Object-relations School

A psychoanalytic theory focusing on relationships with others and the external and internal objects people form attachments to, shaping personality.