Which one of the following will increase a firm's investment in accounts receivables?
A)a decrease in the number of days for which credit is granted
B)a decrease in credit sales
C)an increase in cash sales
D)a decrease in the average collection period
E)an increase in average daily credit sales

Question

Quizplus · Accepted Answer

An increase in average daily credit sales will result in a higher investment in accounts receivables as more customers are purchasing goods on credit.

Which One of the Following Will Increase a Firm's Investment