FUND.OF.FIN.ACCT.-CONNECT >CUSTOM<
5th Edition
ISBN: 9781259719226
Author: PHILLIPS
Publisher: MCG CUSTOM
expand_more
expand_more
format_list_bulleted
Videos
Textbook Question
Chapter 8, Problem 11Q
Does an increase in the receivables turnover ratio generally indicate faster or slower collection of receivables? Explain.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
What is the method for calculating the receivables turnover ratio? What does this proportion imply? Is it better to have a larger or lower receivables turnover?
How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower receivables turnover preferable?
Question Which of the following changes in credit standards and conditions would cause an improvement in profit?
A) An increase in the percentage of doubtful collections.
B) An increase in collection expenses.
C) Decrease in units sold
D) Increase in the turnover of accounts receivable.
Chapter 8 Solutions
FUND.OF.FIN.ACCT.-CONNECT >CUSTOM<
Ch. 8 - What are the advantages and disadvantages of...Ch. 8 - Prob. 2QCh. 8 - Which basic accounting principles does the...Ch. 8 - Using the allowance method, is Bad Debt Expense...Ch. 8 - What is the effect of the write-off of...Ch. 8 - How does the use of calculated estimates differ...Ch. 8 - Prob. 7QCh. 8 - What is the primary difference between accounts...Ch. 8 - What are the three components of the interest...Ch. 8 - Prob. 10Q
Ch. 8 - Does an increase in the receivables turnover ratio...Ch. 8 - What two approaches can managers take to speed up...Ch. 8 - When customers experience economic difficulties,...Ch. 8 - (Supplement 8A) Describe how (and when) the direct...Ch. 8 - (Supplement 8A) Refer to question 7. What amounts...Ch. 8 - 1. When a company using the allowance method...Ch. 8 - 2. When using the allowance method, as Bad Debt...Ch. 8 - 3. For many years, Carefree Company has estimated...Ch. 8 - 4. Which of the following best describes the...Ch. 8 - 5. If the Allowance for Doubtful Accounts opened...Ch. 8 - 6. When an account receivable is recovered a....Ch. 8 - Prob. 7MCCh. 8 - 8. If the receivables turnover ratio decreased...Ch. 8 - Prob. 9MCCh. 8 - Prob. 10MCCh. 8 - Prob. 8.1MECh. 8 - Evaluating the Decision to Extend Credit Last...Ch. 8 - Prob. 8.3MECh. 8 - Prob. 8.4MECh. 8 - Recording Write-Offs and Bad Debt Expense Using...Ch. 8 - Determining Financial Statement Effects of...Ch. 8 - Estimating Bad Debts Using the Percentage of...Ch. 8 - Estimating Bad Debts Using the Aging Method Assume...Ch. 8 - Recording Bad Debt Estimates Using the Two...Ch. 8 - Prob. 8.10MECh. 8 - Prob. 8.11MECh. 8 - Recording Note Receivable Transactions RecRoom...Ch. 8 - Prob. 8.13MECh. 8 - Determining the Effects of Credit Policy Changes...Ch. 8 - Prob. 8.15MECh. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Bad Debt Expense Estimates and...Ch. 8 - Determining Financial Statement Effects of Bad...Ch. 8 - Recording, Reporting, and Evaluating a Bad Debt...Ch. 8 - Recording Write-Offs and Recoveries Prior to...Ch. 8 - Prob. 8.5ECh. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Computing Bad Debt Expense Using Aging of Accounts...Ch. 8 - Recording and Reporting Allowance for Doubtful...Ch. 8 - Recording and Determining the Effects of Write-Off...Ch. 8 - Prob. 8.10ECh. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Recording Note Receivable Transactions, Including...Ch. 8 - Prob. 8.13ECh. 8 - Prob. 8.14ECh. 8 - Prob. 8.15ECh. 8 - Prob. 8.16ECh. 8 - (Supplement 8A) Recording Write-Offs and Reporting...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Prob. 8.2CPCh. 8 - Recording Notes Receivable Transactions Jung ...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Prob. 8.5CPCh. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Prob. 8.2PACh. 8 - Prob. 8.3PACh. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Analyzing Allowance for Doubtful Accounts,...Ch. 8 - Recording Accounts Receivable Transactions Using...Ch. 8 - Interpreting Disclosure of Allowance for Doubtful...Ch. 8 - Recording Notes Receivable Transactions Stinson...Ch. 8 - Accounting for Accounts and Notes Receivable...Ch. 8 - Prob. 8.5PBCh. 8 - Recording and Reporting Credit Sales and Bad Debts...Ch. 8 - Prob. 8.2COPCh. 8 - Recording Daily and Adjusting Entries Using FIFO...Ch. 8 - Prob. 8.1SDCCh. 8 - Comparing Financial Information Refer to the...Ch. 8 - Ethical Decision Making: A Real-Life Example You...Ch. 8 - Critical Thinking: Analyzing the Impact of Credit...Ch. 8 - Using an Aging Schedule to Estimate Bad Debts and...Ch. 8 - Accounting for Receivables and Uncollectible...
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Similar questions
- Question Which of the following changes in credit standards and conditions would cause an improvement in profit? A) Increase in the turnover of accounts receivable B) Decrease in units sold C) Increase in collection expenses D) An increase in the percentage of doubtful accounts receivable.arrow_forwardQuestion By restricting credit, and granting short maturities to speed up accounts receivable turnover, sales may decrease. True or false?arrow_forwardWhich of the following is a positive sign that a company can quickly turn its receivables into cash? a. A low receivables turnover ratio.b. A high receivables turnover ratio.c. A low average collection period.d. Both a high receivables turnover ratio and a low average collection period.arrow_forward
- How do you compute the receivables turnover ratio?arrow_forwardWhat type of company would have a low receivables-collection period?arrow_forwardThe higher the receivables turnover, the O higher the collection period. O more liquid the company's receivables are. O higher the credit sales. O poorer the receivables management.arrow_forward
- Why would a company chose to factor its receivables,given that it will get less money than the receivables areworth?arrow_forwardWhich of the following statements about receivables turnover is false? Receivables turnover measures the efficiency of the firm in managing and selling inventory Receivables turnover measures the liquidity of the firm's receivables Receivables turnover is calculated with revenue in the numerator A low receivables turnover indicates efficient receivables managementarrow_forwardHow to compute the account receivable Turnover without the net credit sales nor the average account receivables ??arrow_forward
- What kind of business would have a short duration of receivables collection?arrow_forwardDefine Receivables turnover ratio with example.arrow_forwardA change in credit policy has caused an increase in sales, an increase in discounts taken, a reduction in the investment in accounts receivable, and a reduction in the number of doubtful accounts. Based upon this information, we know that a)Net income has increased b)The average collection period has decreased. c)Gross profit has declines d)The size of of the discount offered has increasedarrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Century 21 Accounting Multicolumn JournalAccountingISBN:9781337679503Author:GilbertsonPublisher:Cengage
College Accounting, Chapters 1-27AccountingISBN:9781337794756Author:HEINTZ, James A.Publisher:Cengage Learning,- Principles of Accounting Volume 1AccountingISBN:9781947172685Author:OpenStaxPublisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...AccountingISBN:9781305970663Author:Don R. Hansen, Maryanne M. MowenPublisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
Century 21 Accounting Multicolumn Journal
Accounting
ISBN:9781337679503
Author:Gilbertson
Publisher:Cengage
College Accounting, Chapters 1-27
Accounting
ISBN:9781337794756
Author:HEINTZ, James A.
Publisher:Cengage Learning,
Principles of Accounting Volume 1
Accounting
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax College
Cornerstones of Cost Management (Cornerstones Ser...
Accounting
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT
Financial ratio analysis; Author: The Finance Storyteller;https://www.youtube.com/watch?v=MTq7HuvoGck;License: Standard Youtube License