An increase in which one of the following is an indicator that an accounts receivable policy is becoming more restrictive?
A)bad debts
B)accounts receivable turnover rate
C)accounts receivable period
D)credit sales
E)operating cycle

Question

Quizplus · Accepted Answer

An increase in the accounts receivable turnover rate indicates that a company is collecting its receivables more quickly, which is a sign that its accounts receivable policy has become more restrictive. This means the company is either tightening credit terms or more efficiently managing collections.

An Increase in Which One of the Following Is an Indicator