Which of the following statements is true?
A) A high accounts receivable turnover figure will contribute towards a high current asset ratio.
B) An increasing accounts receivable turnover figure signifies an increase in the average number of days to collect accounts receivable.
C) If selling prices are increasing, the accounts receivable turnover figure will tend to increase.
D) If credit sales are constant, an increase in the accounts receivable balance will result in a decrease in the accounts receivable turnover figure.
E) None of the above are true.
Correct Answer:
Verified
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