If the company's accounts receivable turnover is increasing, the average collection period
A) is going up slightly.
B) is going down.
C) could be moving in either direction.
D) is going up by a significant amount.

Question

Quizplus · Accepted Answer

An increasing accounts receivable turnover means that the company is collecting its receivables more quickly, which results in a lower average collection period. Therefore, the answer is B - the average collection period is going down.

If the Company's Accounts Receivable Turnover Is Increasing, the Average