Which of the Following Actions Is Least Likely to Increase

question 168

Multiple Choice

Which of the following actions is least likely to increase a company's accounts receivable turnover?

• A) Encouraging customers to use bank credit cards, such as Visa and MasterCard, rather than other national credit cards, such as American Express.
• B) Offer customers larger cash discounts for making early payments.
• C) Borrowing money, pledging accounts receivable as collateral.
• D) Sell accounts receivable to a factor.

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Definitions:

Office Equipment

Assets such as computers, desks, and chairs used in an office environment to support business operations.

Posting

The process of transferring entries from a journal into the respective accounts in the ledger.

Ledger Account

A record or statement that summarizes all the transactions relating to a particular item or entity in the accounting process.

Journal Page

A journal page refers to a sheet or electronic page in an accounting ledger where financial transactions are chronologically recorded.