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:

Social Emotions

Emotions that arise from interactions with others or from the social environment, reflecting the perceived interdependence among individuals.

Function

In a general context, refers to the purpose, role, or activity that something is designed or used for.

Two-Factor Theory

A psychological theory that proposes human emotions are comprised of two components: physical arousal and a cognitive label of that arousal.

Social Standing

The position or rank of a person or group within the social hierarchy.