If accounts receivable are turned over faster,this means that fewer days are required to collect receivables.

Question

Quizplus · Accepted Answer

Accounts receivable turnover ratio is a measurement of how efficiently a company collects its credit sales. A higher accounts receivable turnover ratio indicates that a company is collecting its receivables more quickly, which means fewer days are required to collect receivables. Therefore, statement A is true.

If Accounts Receivable Are Turned Over Faster,this Means That Fewer