Table 15.6 A Breakdown of Teffan, Inc.'s Outstanding Accounts Receivable Dated June

question 1

Multiple Choice

Table 15.6
A breakdown of Teffan, Inc.'s outstanding accounts receivable dated June 30, 2003 on the basis of the month in which the credit sale was initially made follows. The firm extends 30-day credit terms.
-An increase in accounts receivable turnover due to an increase in collection efforts will

• A) decrease the firm's marginal investments in accounts receivable.
• B) increase the firm's marginal investments in accounts receivable.
• C) decrease the firm's collection expense.
• D) increase the firm's bad debt expense.

---

Definitions:

Journal Entry

A record of a financial transaction within the double-entry bookkeeping system, containing debits and credits.

Debits Expense

An accounting entry that represents an increase in expenses, which in turn reduces equity or net income.

Memorized Transaction List

A feature in accounting software that allows users to save recurring transactions for future use, simplifying data entry.

Lists Menu

In accounting software, the Lists Menu provides access to various lists managed within the software, such as lists of customers, vendors, items, and accounts.