Which of the Following Would Cause a Company's Accounts Receivable

question 339

Multiple Choice

Which of the following would cause a company's accounts receivable turnover ratio to decrease steadily over a three-year period?

• A) An increase in the discount offered for early payment.
• B) A more liberal credit policy.
• C) Invoices provided on a weekly rather than a monthly basis.
• D) Increased cash sales.

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Definitions:

Next-Best Alternative

The best option available to someone after the top choice is taken away, frequently referenced in the context of opportunity cost.

Willie Nelson

A renowned American musician, actor, and activist, known for his contributions to country music.

Consumer Surplus

The split between the sum consumers are willing to pay for a good or service and the sum they finally pay.

Consumer Surplus

The discrepancy between the price consumers are inclined to pay for a product or service and the actual price paid.