What is a possible reason for accounts receivable turnover to increase from one year to the next year?
A) Improved collection process.
B) Granting credit to customers with lower credit quality.
C) Decreased credit sales during a recession.
D) Write-off uncollectible receivables.

Question

Quizplus · Accepted Answer

An improvement in the collection process would mean that the company is collecting its accounts receivable more quickly, resulting in a higher accounts receivable turnover ratio.

What Is a Possible Reason for Accounts Receivable Turnover to Increase