An increase in which one of the following is an indicator that an accounts receivable policy is becoming more restrictive?
A) Bad debts
B) Accounts receivable turnover rate
C) Accounts receivable period
D) Credit sales
E) Operating cycle

Question

Quizplus · Accepted Answer

A more restrictive accounts receivable policy often leads to a higher accounts receivable turnover rate, indicating that the company is collecting its receivables more quickly.

An Increase in Which One of the Following Is an Indicator