An increase in the receivables turnover means that:
A) The majority of customers are paying slower.
B) The prices of items purchased are rising.
C) The days' sales in receivables are rising.
D) Proﬁt margins are rising.
E) Customers are paying their bills faster.

Question

Quizplus · Accepted Answer

An increase in receivables turnover means that customers are paying their bills faster, which leads to quicker collection of revenues and better liquidity for the company.

An Increase in the Receivables Turnover Means That