A High Accounts Receivable Turnover Ratio Indicates

question 10

Multiple Choice

A high accounts receivable turnover ratio indicates

• A) Customers are making payments quickly
• B) A large portion of the company's sales are on credit
• C) Many customers are not paying their receivables in a timely manner
• D) The company's sales have increased

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Definitions:

Net Fixed Assets

The value of a company's property, plant, and equipment minus depreciation, representing the company's investment in long-term assets.

Variance

A measure of the dispersion of a set of data points around their mean value, indicating how spread out the data points are.

Standard Deviation

A measure of the dispersion or spread of a set of values, calculated as the square root of the variance, indicating how much the values deviate from the mean.

Standard Deviation

An assessment of how much the values in a group differ or spread out.