An Unusually High Turnover of Accounts Receivable,which Implies a Very

question 61

Multiple Choice

An unusually high turnover of accounts receivable,which implies a very short days sales outstanding (DSO) ,could indicate that the firm

• A) Is very conservative (tough)in its credit policy.
• B) Has a very efficient credit and collection department.
• C) Offers unusually large discounts.
• D) All of the above.
• E) Only answers a and b above.

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Definitions:

Group Members

Individuals who belong to a collective or team, working together towards shared objectives or interests.

Favoritism

The unfair favoring of one person or group over others based on subjective preferences rather than objective merit.

Cronyism

The practice of favoring one's close friends, especially in political appointments or business, regardless of their qualifications.

Organizational Politics

The behavior in workplaces that involves tactics of power and influence to achieve personal or organizational gain.