Which of These Indicates an Improvement in the Management of Accounts

question 54

Multiple Choice

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

• A) An extension of the time taken to collect debts to beyond the normal credit period.
• B) A increase in the average collection time for accounts receivable.
• C) A change in the average collection period from 36 days to 39 days.
• D) A change in the number of times debtors are turned over per year from 10.29 times to 11.61 times.

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Definitions:

Mean Height

The average height of a group of individuals, calculated by summing their heights and dividing by the number of individuals.

Confidence Interval

A spectrum of values obtained from statistics of a sample, which is likely to encompass the actual population parameter at a specific probability level.

Random Sample

A random sample is a subset of individuals chosen from a larger set, where each individual has an equal chance of being selected.

Checking Account Balance

The amount of money currently available in someone's checking account.