During 2012,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

Quizplus · Accepted Answer

The increase in accounts receivable turnover rate indicates that the company is collecting its accounts faster than before. The most likely reason for this is that the credit department has followed up with past-due customers, prompting faster collections. The other choices do not explain the increase in turnover rate.

During 2012,the Accounts Receivable Turnover Rate for Adaptive Equipment Increased