Other things equal,an increase in average accounts receivable will increase a firm's return on assets.

Name: Other things equal,an increase in average accounts receivable will increase a firm's return on assets.
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Question

Quizplus · Accepted Answer

An increase in average accounts receivable will decrease a firm's return on assets because it indicates that the company is not collecting cash for its sales as quickly, causing a decrease in its liquidity and potentially increasing bad debt expenses.

Other Things Equal,an Increase in Average Accounts Receivable Will Increase