A High Times Debtors Turnover Indicates

question 3

Multiple Choice

A high times debtors turnover indicates

• A)the entities sales have increased.
• B)a large percentage of the entities sales are on credit.
• C)customers are clearing debts more quickly.
• D)customers are clearing debts more slowly.

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Definitions:

Rate of Return

The accrual or depletion in value of an investment across a chosen period, quantified as a percentage of the investment’s initial expense.

Constant Dividend

A policy in which a firm aims to pay out a fixed dividend amount to shareholders regularly.

Constant Dividend

A Constant Dividend refers to a fixed amount of money paid out to shareholders of a corporation's profits on a regular basis.

Market Rate

The prevailing interest rate or price available in the marketplace for goods, services, or securities.