An Increase in the Accounts Receivable Turnover May Be Due

question 43

True/False

An increase in the accounts receivable turnover may be due to an improvement in the collection of receivables or to a change in the granting of credit and/or in collection practices.

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Definitions:

GASB Statement No. 68

A standard issued by the Governmental Accounting Standards Board that establishes accounting and reporting requirements for pensions by state and local governments.

Government's Liability

The obligations that the government is responsible for, often stemming from borrowing, legal claims, or other financial commitments.

Defined Benefit Pension Plans

Retirement plans where the benefits that employees receive are calculated using formulas considering factors like salary history and tenure, rather than depending on investment returns.

Fiduciary Funds

Funds held by an entity in a trustee or agent capacity for others, requiring the entity to manage the funds for the benefit of the parties involved.