The higher the accounts receivable turnover the better because it indicates that the company is more quickly collecting cash (through sales).

Name: The higher the accounts receivable turnover the better because it indicates that the company is more quickly collecting cash (through sales).
Brand: Quizplus
Rating: 4.8 (34 reviews)

Question

Quizplus · Accepted Answer

A higher accounts receivable turnover ratio indicates that a company is able to collect cash from sales at a faster rate, which is generally considered a positive sign for financial performance.

The Higher the Accounts Receivable Turnover the Better Because It