As Part of Audit Planning,you Have Calculated Accounts Receivable Turnover

question 73

Multiple Choice

As part of audit planning,you have calculated accounts receivable turnover for the last five years and compared it to industry averages.Your client's accounts receivable has decreased by about 1.25 times in the current year,while the industry rate has improved.One possible cause of this lowered accounts receivable turnover is

• A)higher cost of goods sold.
• B)increased bad debt expenses.
• C)fictitious revenue.
• D)fictitious expenses.

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Definitions:

Stakeholder Ethics

The moral principles and values that should guide the interactions and decisions involving all parties with an interest in an organization.

Credo

A statement of the beliefs or aims that guide someone's actions.

Final Responsibility

The ultimate accountability for an action or decision, typically held by a leader or highest authority in an organization.

Conducting Business

The act of engaging in activities that produce goods or services to satisfy consumer demand and generate profit.