Which of the following actions is least likely to increase a company's accounts receivable turnover?

Question

Quizplus · Accepted Answer

Borrowing money and pledging accounts receivable as collateral will not directly impact the accounts receivable turnover ratio. It will only increase liabilities and interest expenses. The other options, such as offering cash discounts for early payments or selling accounts receivable to a factor, will reduce the amount of outstanding receivables and increase the turnover ratio. Encouraging customers to use certain credit cards may also indirectly impact the turnover ratio, as some payment methods may have longer payment processing times, leading to a longer average collection period.

Which of the Following Actions Is Least Likely to Increase