The Accounting Records of the Harris and Schubert Companies Contained

question 135

Multiple Choice

The accounting records of the Harris and Schubert Companies contained the following account balances:
Select the true statement from the following options:

• A)Schubert Company is likely to incur less credit costs than Harris Company.
• B)The company with the higher turnover ratio will also have the longer average number of days to collect accounts receivable.
• C)The accounts receivable for Schubert Company turns over 6 times each year.
• D)The average number of days to collect accounts receivable for Harris is 73 days.

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Definitions:

Repetitive Process

A product-oriented production process that uses modules.

Assembly Line

A production process that breaks down the manufacture of a good into steps that are completed in a pre-defined sequence, enhancing efficiency through specialization and mechanization.