Which of the Following Statements Is NOT True Regarding Accounts

question 40

Multiple Choice

Which of the following statements is NOT true regarding accounts receivable turnover?

• A)In general, the higher the ratio, the better.
• B)If the accounts receivable turnover ratio is too high, this may indicate that credit is too tight and the company may be losing sales to good customers.
• C)Accounts receivable turnover is computed by dividing net sales by end of the year receivables.
• D)Accounts receivable turnover is computed by dividing net sales by average accounts receivable.

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Definitions:

Stereochemistry

The study of the spatial arrangement of atoms in molecules and its influence on the physical and chemical properties of substances.

Solvolysis

A chemical reaction in which the solvent plays the role of a reactant, breaking bonds within the substrate molecule, often involving water or alcohol.

Methanol

A basic type of alcohol known by the chemical formula CH3OH, utilized in various applications including as a solvent, antifreeze, fuel, and as a starting point for the synthesis of other chemical compounds.

Relative Rate

A measure of the speed at which one reactant in a chemical reaction is consumed compared to another, often used to determine mechanisms in kinetics studies.