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remmylp remmylp
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9 months ago

Which of the following statements is true?

  1. As the accounts receivable turnover ratio decreases, the average collection period increases.
  2. If a company’s operating cycle is much longer than its average payment period for suppliers, it creates the need to borrow money to fund its inventories and accounts receivable.


▸ Only statement I is true.

▸ Only statement II is true.

▸ Both statements are true.

▸ Neither statement is true.
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
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pedro0811pedro0811
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9 months ago
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remmylp Author
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9 months ago
Good timing, thanks!
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Yesterday
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kaytee23
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2 hours ago
Thanks
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