A very high accounts receivable turnover would most likely indicate that:
A) net credit sales for the year have been understated
B) policies for extending credit to customers are too tight
C) accounts receivable balances have been overstated
D) the company is unsuccessful in its efforts to collect cash from customers

Question

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A very high accounts receivable turnover indicates that the company is collecting its receivables quickly, which could suggest that the credit policies are too strict, limiting sales opportunities.

A Very High Accounts Receivable Turnover Would Most Likely Indicate