If company A has a lower average collection period than company B,then company A will have a higher accounts receivable turnover.

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Accounts receivable turnover is calculated as the ratio of net credit sales to the average accounts receivable. A lower average collection period means that a company is collecting its accounts receivable more quickly, which in turn means that the average accounts receivable balance is lower. Therefore, the accounts receivable turnover ratio will be higher for company A compared to company B, assuming that all other factors are equal.

If Company a Has a Lower Average Collection Period Than