If accounts receivable (debtors)turnover is speeding up,which of the following is not likely to be a factor?
A)The firm has implemented very stringent credit granting procedures for new customers
B)The firm issues all its invoices promptly and accurately to clients
C)The firm contacts slow-paying clients quickly and effectively concerning payment of overdue accounts
D)The firm has instituted 'no-interest-for-6-months' terms for customers

Question

Quizplus · Accepted Answer

Offering 'no-interest-for-6-months' terms for customers may actually slow down accounts receivable turnover as it encourages customers to delay payment. A, B, and C are all factors that would likely speed up accounts receivable turnover by ensuring timely collection of payments from customers.

If Accounts Receivable (Debtors)turnover Is Speeding Up,which of the Following