Which of the Following Indicates an Improvement in the Management

question 33

Multiple Choice

Which of the following indicates an improvement in the management of accounts receivable?

• A) An increase in the average collection time for accounts receivable.
• B) A change in the average collection period from 34 days to 39 days.
• C) An extension of the time taken to collect debts to beyond the allowed credit period.
• D) A change in the number of times debtors are turned over per year from 8.32 times to 10.85 times.

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Definitions:

Groupthink

A psychological phenomenon that occurs within a group of people, where the desire for harmony or conformity in the group results in an irrational or dysfunctional decision-making outcome.

Group Solidarity

The unity, shared purposes, and sense of belonging that members of a group feel toward each other and the collective.

Group Member

An individual who belongs to a group, sharing common goals or interests and participating in collective activities.

Obedience

The act of following orders or directions from an authority figure, often studied in psychology as a behavioural trait.