A retailer that accepts credit cards will have a higher accounts receivable turnover ratio than a retailer with its own credit department.

Question

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A retailer that accepts credit cards receives payment directly from the credit card company, leading to a faster turnover of accounts receivable. On the other hand, a retailer with its own credit department has to wait for customers to pay their credit accounts, leading to a slower turnover of accounts receivable.

A Retailer That Accepts Credit Cards Will Have a Higher