An Increase in the Effort Put into Collection of Accounts

question 11

Multiple Choice

An increase in the effort put into collection of accounts receivable will result in ________ in the investment in accounts receivable, ________ in bad debts expense, and ________ in collections expenditure.

• A)a decrease; an increase; a decrease
• B)a decrease; a decrease; an increase
• C)an increase; a decrease; an increase
• D)a decrease; an increase; an increase

---

Definitions:

Construction Company

A business entity engaged in the building of structures, infrastructure, and other large-scale projects.

Intermediate Good

A product used to produce a final good or finished product.

Gross Domestic Product

The total market value of all final goods and services produced within a country in a given period of time, typically annually.

Inventories

Raw materials, work-in-progress goods, and completely finished products that companies hold to facilitate business operations.