Good credit control is signalled by:
A) high accounts receivable turnover and high days sales in receivables.
B) low accounts receivable turnover and low days sales in receivables.
C) low accounts receivable turnover and high days sales in receivables.
D) high accounts receivable turnover and low days sales in receivables.

Question

Quizplus · Accepted Answer

A high accounts receivable turnover indicates that a company is collecting its outstanding debts quickly, while low days sales in receivables suggests that receivables are being turned into cash in a short amount of time. This indicates effective credit control.

Good Credit Control Is Signalled By