Which of the following would be least expected to change as a result of a higher average age of receivables?
A) Current ratio
B) Total collection costs
C) Accounts payable
D) Bad debt expense

Question

Quizplus · Accepted Answer

The average age of receivables refers to the length of time it takes for a company to collect payment from its customers. A higher average age of receivables indicates that the company is taking longer to collect payment. This would not have a direct impact on accounts payable, which represents the amount owed by the company to its suppliers. Thus, the least expected to change would be accounts payable.

Which of the Following Would Be Least Expected to Change