An Acceleration in the Collection of Receivables Will Tend to Cause

question 38

Multiple Choice

An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to

• A) decrease
• B) remain the same
• C) either increase or decrease
• D) increase

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Definitions:

Decline

A gradual decrease in quality, quantity, or importance.

Statistical Significance

A statistical statement of how likely it is that an obtained result occurred by chance.

Normal Curve

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

Normal Distribution

A type of statistical distribution where data forms a symmetrical bell-shaped curve, with most values clustering around a central mean value.