An Increase in Accounts Receivable Turnover Due to an Increase

question 287

True/False

An increase in accounts receivable turnover due to an increase in collection efforts will decrease a firm's marginal investment in accounts receivable.

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Definitions:

Production Factor

Inputs used in the production of goods or services in order to make an economic profit, including land, labor, capital, and entrepreneurship.

College

An institution of higher education offering undergraduate or graduate degrees.

Factor of Production

A factor of production is an economic resource utilized in the creation of goods or services, including labor, land, capital, and entrepreneurship.

Total Income

The sum of all wages, salaries, profits, interest payments, rents, and other forms of earnings received by an individual or business in a given period.