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:

Pleasure And Arousal

These terms refer to emotional states that can influence consumer behavior, with pleasure relating to feelings of happiness and satisfaction, and arousal to the level of excitement and stimulation.

Consumption Environment

The setting or surroundings in which consumers engage with products or services, influencing purchasing behaviors.

Heuristic Processing

A mental shortcut that allows individuals to solve problems and make judgments quickly and efficiently, often relying on simple rules of thumb or educated guesses.

Marketing Messages

Communications directed towards consumers with the intention of influencing their perceptions, beliefs, or behaviors towards a product or service.