Accounts receivable turnover will normally decrease as a result of PDF

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1. Accounts receivable turnover will normally decrease as a result of: a. The write-off of an uncollectible account (assume the use of the allowance for doubtful accounts methods b. A significant sales volume decrease near the end of the accounting period c. An increase in cash sales in proportion to credit sales d. A change in credit policy to lengthen the period for cash discounts 2. The credit and collection policy of Amargo Co, provides for the imposition of credit block when the credit line is exceeded and/or the account is past due. During the month, because of the campaign to achieve volume targets, the general manager has waived the credit block policy in a number of instances involving big volume accounts. The likely effect of this move is: a. b. c. d.

Deterioration of aging of receivables only Increase in the level of receivables only Deterioration of aging and increase in the level of receivables Decrease in collections during the month the move was done...