A Company Currently Allows Its Customers to Take 30 Days

question 29

Multiple Choice

A company currently allows its customers to take 30 days to pay their accounts receivable. Almost all of its customers pay in around 30 days. If a company changes its policy, and allows customers to wait 60 days before paying, it is likely that in future years

• A) Accounts receivable turnover will increase from about 12 to about 24.
• B) Accounts receivable turnover will decrease from about 12 to about 6.
• C) Accounts receivable turnover will increase from around 6 to about 12.
• D) Accounts receivable turnover will decrease from around 6 to around 3.

---

Definitions:

Batches

Groups of items, tasks, or data processed or treated together as a set in manufacturing or information technology contexts.

Data

Information, often in the form of facts or statistics, collected together for reference or analysis.

Amazon

An American multinational technology company focused on e-commerce, cloud computing, digital streaming, and artificial intelligence, considered one of the world’s most valuable brands.

CIOs

Chief Information Officers, the executives responsible for managing and overseeing an organization's information technology strategies.