During the current year, the accounts receivable turnover rate for Adaptive Equipment increased from 10 to 15 times per year. Which one of the following statements is the most likely explanation for the change?

Question

Quizplus · Accepted Answer

The increase in accounts receivable turnover rate suggests that the company is collecting its receivables faster. Following up with customers who have overdue balances would help to generate quicker collections, which would increase the accounts receivable turnover rate. The other options would not lead to an increase in accounts receivable turnover rate.

During the Current Year, the Accounts Receivable Turnover Rate for Adaptive