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Which of the Following Is Most Likely to Indicate That

Question 23

Multiple Choice

Which of the following is most likely to indicate that a firm is experiencing difficulty in collecting its receivables?


A) Its average collection period decreases from 36 to 32.
B) Its accounts receivable turnover increases from 8 to 10.
C) Its accounts receivable turnover decreases from 10 to 8.
D) The bad debt reserve decreases by 10%.

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