Which Statement Concerning the Receivables Turnover Ratio Is True

question 35

Multiple Choice

Which statement concerning the receivables turnover ratio is true?

• A) It is calculated as total sales divided by average receivables.
• B) A change in the ratio from 3.1 times to 2.8 times is a favourable change.
• C) If the receivables turnover ratio is divided into 365 this gives the average number of days it takes to sell receivables.
• D) It is a measure of how many times the average receivables balance is converted into cash in a year.

---

Definitions:

Chimpanzees

A species of great ape known for its intelligence and complex social behaviors, often studied to gain insights into human evolution and behavior.

Unconscious Influences

Factors operating below an individual's level of conscious awareness that can affect thoughts, feelings, and behaviors.

Traits

Enduring characteristics or tendencies that influence behavior across various situations and over time.

Defense Mechanisms

Psychological strategies used unconsciously by individuals to protect themselves from anxiety and unacceptable thoughts or feelings.