Which of the following demonstrates that a company is managing its receivables well?

Question

Quizplus · Accepted Answer

A company managing its receivables well means that it has a good system of collecting payments from its customers on time, which in turn provides the company with enough cash to pay its bills. Therefore, having enough cash to pay bills is a sign of good receivables management. Options A and B suggest an unfavorable financial situation for the company, while option D suggests that the company has excess cash, which may indicate inefficient cash management, rather than good receivables management.

Which of the Following Demonstrates That a Company Is Managing