A low receivable turnover indicates that
A)few customers are defaulting on their debts.
B)a large proportion of the company's sales are on credit.
C)the company's inventory is moving very quickly.
D)customers are making payments slowly.

Question

Quizplus · Accepted Answer

A low receivable turnover means that customers are taking longer to make their payments, which leads to a decrease in cash flow for the company. This can be a sign of issues with customer creditworthiness or the company's credit policies.

A Low Receivable Turnover Indicates That