A high receivables turnover ratio may indicate that
A)customers are making payments quickly.
B)a large portion of the company's sales are on credit.
C)many customers are not paying their receivables.
D)the company's sales have increased.

Question

Quizplus · Accepted Answer

A high receivables turnover ratio suggests that customers are paying off their debts quickly, indicating efficient credit and collection processes.

A High Receivables Turnover Ratio May Indicate That