Use the following statements to answer this question:
I.A high receivables turnover is a good credit strategy that allows firms to lower working capital requirements
II.Trade credit terms are financing tools to the supplier
A)I and II are correct.
B)I and II are incorrect.
C)I is correct and II is incorrect.
D)I is incorrect and II is correct.

Question

Quizplus · Accepted Answer

A high receivables turnover indicates efficient collection of credit sales, reducing the need for working capital. Trade credit terms are financing tools for the buyer, not the supplier.

Use the Following Statements to Answer This Question