If a company factors its receivables,its receivables turnover ratio will be higher than it would have been if the receivables had not been factored.

Question

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The accounts receivable turnover ratio equals net sales divided by average net accounts receivable.If a company factors its receivables,the average net accounts receivable will decrease and the receivables turnover ratio would increase.

If a Company Factors Its Receivables,its Receivables Turnover Ratio Will