An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to:
A) decrease.
B) neither increase nor decrease.
C) increase.
D) remain the same.

Question

Quizplus · Accepted Answer

An acceleration in the collection of receivables means that the company is collecting its accounts receivable faster, which will cause the accounts receivable turnover to increase. This is because the turnover ratio measures how quickly a company collects its accounts receivable, and a faster collection period means a higher turnover ratio.

An Acceleration in the Collection of Receivables Will Tend to Cause