If the receivables turnover ratio decreased during the year, a. The days to collect also decreased. b.

Question:

If the receivables turnover ratio decreased during the year,

a. The days to collect also decreased.
b. Receivables collections slowed down.
c. Sales Revenues increased at a faster rate than Accounts Receivable increased.
d. None of the above.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Financial Accounting

ISBN: 9781265440169

7th Edition

Authors: Fred Phillips, Shana Clor Proell, Robert Libby, Patricia Libby

See More Books

Question Posted: Nov 03, 2021 01:38 AM

See More Questions

Computing and Interpreting the Receivables Turnover Ratio A recent annual report for FedEx contained the following data: Required: 1. Determine the receivables turnover ratio and average days sales...
How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower receivables turnover preferable?
Does an increase in the receivables turnover ratio generally indicate faster or slower collection of receivables? Explain.
Given the following network, with the indicated flow capacities along each branch, determine the maximum flow from source node 1 to destination node 10 and the flow along eachpath: 15 5 10 7 16 12 0...
Why is 3M Company attempting to raise productivity? From your knowledge of how products are manufactured, in what other ways do you think 3M could increase productivity?
Suppose that there is limited commitment in the credit market, but lenders are uncertain about the value of collateral. Each consumer has a quantity of collateral H, but from the point of view of...
If the Australian Mining Corporation earned A$$550,000$ (Australian dollar) in net income, spent A$$110,000$ in cost of goods sold, had A$$45,000$ of general and administrative expenses,...
You are called in as a financial analyst to appraise the bonds of Olsens Clothing Stores. The $1,000 par value bonds have a quoted annual interest rate of 10 percent, which is paid semiannually. The...
1. In the system shown in figure, all surfaces are smooth. Rod is moved by external agent with acceleration 0.9 ms vertically downwards. Force exerted on the rod by the wedge will be Newtons.
Internet Consulting Service, Inc., adjusts its accounts every month. The company's year-end unad- justed trial balance dated December 31, 2018 follows. (Bear in mind that adjusting entries already...
In 2016, Coca-Cola Bottling had a receivables turnover ratio of 11.5. Which of the following actions could Coca- Cola take to cause the ratio to increase? a. Pursue collections more aggressively. b....
If a 5 percent note receivable for $100,000 is created on January 1, 2018, and it has a maturity date of December 31, 2021, a. No interest revenue will be recorded in 2018. b. The note receivable...
Explain the process of territory management.
How do I produce a T account when someone has paid business rent from his personal bank account? I'm assuming this would be recorded as a debit in the rent account but I'm not sure about the bank...
Internal auditors at Henry Flower's Flower Shop are undertaking a comprehensive review to determine if the company has complied with privacy regulations regarding customer data. In the Control...
It takes the same amount of time to double all three accounts ($100, $200, $500). All three accounts take 13.863 to double We can determine that the starting amount is irrelevant because any starting...
Consider the annual reports of Ferrari for 2 0 2 2 uploaded. Using financial ratios, you are required to compare them and answer the following questions: Question 1 : For the Balance sheet: * What is...
What method do companies typically use when initially entering a foreign market?
Show that rMO of (14.6) is greater than rVB of (14.6) at the midpoint of the line joining the nuclei. In Equation 14.6 VB 1Sab
What is your opinion of advertising awards, such as the Cannes Lions, that are based solely on creativity? If you were a marketer looking for an agency, would you take these creative awards into...
Last year, Pastis Productions reported $ 100,000 in sales and $ 40,000 in cost of goods sold. The company estimates it would have doubled its sales and cost of goods sold had it allowed customers to...
On December 31, 2014, Extreme Fitness has adjusted balances of $ 800,000 in Accounts Receivable and $ 55,000 in Allowance for Doubtful Accounts. On January 2, 2015, the company learns that certain...
Lets go a bit further with the example from M8-3. Assume that on February 2, 2015, Extreme Fitness received a payment of $ 500 from one of the customers whose balance had been written off. Prepare...
Please create the model of a library database. Describe the one-to-many relationships in the library database What is the name of the DDL file you exported in step 2.3 Generate DDL ? Create a...
Define the relational model. What is a relational database management system (DBMS)?
As a successful entrepreneur and CEO, you are considering making some financial decisions for your engineering company. Examining the financial report of your company, you notice: . The upgrade of...

If the receivables turnover ratio decreased during the year, a. The days to collect also decreased. b.

Question:

Step by Step Answer:

Req1 Req2 a b c d Accounts Receivable Service Revenue A...View the full answer

Fundamentals Of Financial Accounting

Related Video

Students also viewed these Business questions