What can a company try to improve its accounts receivable turnover ratio?
A)Lower its selling prices
B)Increase its sales force
C)Give customers credit terms of 2/10,n/30 rather than 1/10,n/30
D)Reduce the number of employees working in the credit department

Question

Quizplus · Accepted Answer

By offering customers credit terms of 2/10, n/30, the company is giving them a larger incentive to pay their bills earlier, which could help speed up the collection process and improve the accounts receivable turnover ratio. Lowering selling prices or reducing the number of employees working in the credit department may not necessarily improve the ratio, and increasing the sales force may lead to more sales but not necessarily better collections.

What Can a Company Try to Improve Its Accounts Receivable