An Increase in Accounts Receivable Turnover Due to an Increase

question 179

True/False

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

---

Definitions:

Professional Analysts

Individuals who evaluate investments, the performance of stocks, bonds, and other securities, to provide recommendations or insights to investors.

Timeliness

The principle that financial information must be presented to users early enough to influence their decisions.

Qualitative Characteristic

A feature that describes the non-quantitative aspects of accounting information, which makes it useful for decision-making.

Financial Information

Data and facts regarding a company's financial performance, position, and cash flows, as represented in its financial statements and other reports.