Use the following information for questions 100-103.
Orville Enterprise Ltd. revealed the following information for the years ended December 31, 2014 and 2015:
-On the average Orville Enterprise has been collecting its accounts receivable
A) within the 30 days required by its credit terms.
B) after the 30 days has passed.
C) within the discount period of 10 days.
D) More information is needed to answer this question.

Question

Use the following information for questions 100-103.
Orville Enterprise Ltd. revealed the following information for the years ended December 31, 2014 and 2015: 
-On the average Orville Enterprise has been collecting its accounts receivable
A) within the 30 days required by its credit terms. 
B) after the 30 days has passed. 
C) within the discount period of 10 days. 
D) More information is needed to answer this question.

Quizplus · Accepted Answer

The accounts receivable turnover ratio has decreased from 10 in 2014 to 8 in 2015, indicating that the company was taking longer to collect its accounts receivable. This means that the company was collecting its accounts receivable after the 30 days had passed.

Use the Following Information for Questions 100-103