Which of the Following Statements About the Interpretation of the Receivables

question 217

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.
• 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.

Learn how the assessment of a reader's reaction influences the construction of a business message.

Understand the stages of the writing process and recognize that it is not strictly linear.

Recognize the relevance and efficiency of different communication tools within a business environment.

Comprehend the role of planning in the writing process, including its goals and required considerations.

---

Definitions:

Consistency

The quality of maintaining a steady and predictable standard or behavior over a period of time.

Balance

A principle in design and composition striving for a visual or structural harmony among elements within a work or space.

Readability

The ease with which a reader can understand written text, influenced by factors such as layout, font size, and writing style.

Typeface

The design and style of a set of characters, including letters, numbers, and symbols, often used in printing and digital media.