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If a Company Attempts to Artificially Inflate Current Sales and Net

Question 33

Multiple Choice

If a company attempts to artificially inflate current sales and net income by shipping goods that have not been ordered,we would expect that the receivables turnover ratio will:


A) rise and the days-to-collect will rise,all other things equal.
B) rise and the days-to-collect will fall,all other things equal.
C) fall and the days-to-collect will fall,all other things equal.
D) fall and the days-to-collect will rise,all other things equal.

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