What Can a Company Try to Improve Its Accounts Receivable

question 122

Multiple Choice

What can a company try to improve its accounts receivable turnover ratio?

• 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:

Construct Validity

The degree to which a test or tool measures the theoretical construct or trait it is intended to measure, reflecting its accuracy and appropriateness of inferences drawn from test scores.

Discriminant Validity

A property demonstrating that a test or scale that is not closely related to variables from which it is theoretically distinct.

Construct Validity

The degree to which a test or instrument accurately measures the theoretical construct or psychological concept it intends to.

Content Validity

The degree to which a test or instrument covers the representative breadth of the topic or construct it is intended to measure.