If the company's accounts receivable turnover is decreasing,the average collection period:

Question

Quizplus · Accepted Answer

Accounts receivable turnover is the number of times the company collects its average accounts receivable balance during a year. A decreasing accounts receivable turnover means that the company is collecting its accounts receivable at a slower rate. Therefore, the average collection period (the time it takes to collect accounts receivable) is increasing, thus choice A is correct.

If the Company's Accounts Receivable Turnover Is Decreasing,the Average Collection