If the Days Debtors Ratio Changes from 32 Days to 38

question 24

Multiple Choice

If the days debtors ratio changes from 32 days to 38 days this indicates that:

• A) the entity is becoming more efficient at collecting money from trade debtors.
• B) the time taken to collect money from trade debtors is increasing.
• C) the time taken to sell inventory is increasing.
• D) the time taken to pay suppliers of inventory is increasing.

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Definitions:

Protostomes

Animals that belong to the Protostomia, one of the major animal clades. Include the annelids, arthropods, and mollusks. Compare with deuterostomes.

Deuterostomes

A major group of animals characterized by their embryonic development, in which the anus forms before the mouth.

Spiral Cleavage

A distinctive spiral pattern of blastomere production in an early protostome embryo. Compare with radial cleavage.

Coelom

The main body cavity of most animals; a true coelom is lined with mesoderm. Compare with pseudocoelom.