A Low Receivables Turnover Ratio Is a Positive Sign That

question 17

True/False

A low receivables turnover ratio is a positive sign that a company can quickly turn its receivables into cash.

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Definitions:

Fixed Costs

Expenses that do not change in the short term regardless of the level of production or output.

Capital Expenditure

Capital expenditure involves funds spent by a company to acquire or upgrade physical assets such as equipment, property, or industrial buildings.

Wages

Payments made to employees based on the amount of time worked or the level of output produced.

Output

The total amount of goods or services produced by a company, industry, or economy.