An unusually high turnover of accounts receivable,which implies a very short days sales outstanding (DSO),could indicate that the firm
A) Is very conservative (tough)in its credit policy.
B) Has a very efficient credit and collection department.
C) Offers unusually large discounts.
D) All of the above.
E) Only answers a and b above.

Question

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An unusually high turnover of accounts receivable, indicating a very short days sales outstanding (DSO), could be due to a very conservative (tough) credit policy, a very efficient credit and collection department, or offering unusually large discounts to encourage quick payments. All these factors contribute to faster collection of receivables.

An Unusually High Turnover of Accounts Receivable,which Implies a Very