What Should a Company Do to Improve Its Accounts Receivable

question 67

Multiple Choice

What should a company do to improve its accounts receivable turnover rate?

• A) lower its selling prices
• B) increase its sales force
• C) give customers credit terms of 2/10, n/30, rather than 1/10, n/30
• D) reduce the number of employees working in the credit department

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Definitions:

Variance

An indicator of how much a dataset varies or is spread out from the average value.

Independent Replications

Separate instances of running a simulation or experiment where the initial conditions or random elements are independently generated each time.

Normal Distribution

A bell-shaped curve that represents the distribution of many types of data where most values cluster around a central mean.

X-axis

The horizontal axis in a coordinate system, typically used to represent the independent variable in a graph.