If Business Conditions Are Stable,an Increase in the Number of Accounts

question 97

Multiple Choice

If business conditions are stable,an increase in the number of accounts receivable turnover from one year to the next (based upon a company's accounts receivable at year-end) might indicate:

• A) that a longer discount period and a more distant due date were extended to customers in the second year.
• B) a significant decrease in the volume of sales of the second year.
• C) that the second year's sales were made at lower prices than the first year's sales.
• D) a stiffening of the company's credit policies.
• E) None of these choices are correct.

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