Assuming Stable Business Conditions,an Increase in the Accounts Receivable Turnover

question 187

Multiple Choice

Assuming stable business conditions,an increase in the accounts receivable turnover ratio could be explained by:

• A)stricter policies with respect to the granting of credit to customers.
• B)an easing of policies with respect to the granting of credit to customers.
• C)a slowdown in collecting accounts receivables from customers.
• D)none of these.

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Definitions:

Devise

A legal term for the bequest of real estate property through a will.

Real Property

Real property includes land and anything permanently attached to it, like buildings, in contrast with personal property, which is movable.

Personal Property

Assets that are movable and not fixed to one location, such as furniture, vehicles, and equipment, contrary to real estate.