During 2013, the accounts receivable turnover rate for Adaptive Equipment increased from 10 to 15 times per year. Which one of the following statements is the most likely explanation for the change?

Question

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An increase in accounts receivable turnover rate means that accounts are collected more frequently within the year. Option A suggests that the company's credit department has followed up with customers whose account balances are past due in order to generate quicker collections. This action would result in an increase in the accounts receivable turnover rate as customers would be paying their outstanding balances more quickly. Options B, C, and D would result in a decrease or no change in the accounts receivable turnover rate.

During 2013, the Accounts Receivable Turnover Rate for Adaptive Equipment