What should a company do to improve its accounts receivable turnover ratio?

Question

Quizplus · Accepted Answer

By giving customers credit terms of 2/10, n/30 rather than 1/10, n/30, the company is offering an incentive to customers who pay their bills early. This can speed up the collection process and improve the accounts receivable turnover ratio. Lowering selling prices or increasing the sales force may increase sales, but it will not necessarily improve the accounts receivable turnover ratio. Similarly, reducing the number of employees in the credit department may reduce costs, but it may also result in slower collections and lower accounts receivable turnover.

What Should a Company Do to Improve Its Accounts Receivable