Declan Inc

question 58

Multiple Choice

Declan Inc.calculated its accounts receivable turnover for 2017 to be 20.0.Both years prior to 2017 showed accounts receivable turnovers to be 12.0.Based on this information,what is the best explanation for the change?

• A)The company had fewer accounts receivable in 2017 than the prior two years.
• B)The company had more sales in 2017 than in the prior two years.
• C)The company had fewer sales in 2017 than in the prior two years.
• D)The company took longer to collect their accounts receivable in 2017 than the prior two years.
• E)None of the answer choices is correct.

---

Definitions:

Equipment Purchased

The acquisition of physical assets like machinery or technology used in the production of goods or services.

Accounts Receivable Subsidiary Ledger

A detailed ledger that tracks individual customer transactions and balances, complementing the overall accounts receivable account.

Record Sale

To record a sale refers to the process of documenting a sales transaction in the accounting books, acknowledging the exchange of goods or services for payment.

Revenue Journal

A revenue journal is an accounting ledger that records sales transactions where a business earns revenue, typically used in a manual accounting system.