Which of the following is true?
A)Accounts receivable fall as companies sell on credit.
B)Accounts receivable rise as companies receive payment.
C)Receivables turnover refers to how fast receivables are collected.
D)All of the above.

Question

Quizplus · Accepted Answer

The correct answer is option C, as receivables turnover measures how fast a company is able to collect its outstanding receivables. Option A is incorrect, as accounts receivable increase when companies sell on credit, and option B is incorrect, as accounts receivable decrease when companies receive payment for their credit sales.

Which of the Following Is True