Assuming stable business conditions,an increase in the accounts receivable turnover ratio could be explained by:
A)stricter policies with respect to the granting of credit to customers.
B)an easing of policies with respect to the granting of credit to customers.
C)a slowdown in collecting accounts receivables from customers.
D)none of these.

Question

Quizplus · Accepted Answer

Stricter policies with respect to the granting of credit to customers would likely increase the accounts receivable turnover ratio because given customers in a stronger financial position and having more liquidity would be more able to pay on time.

Assuming Stable Business Conditions,an Increase in the Accounts Receivable Turnover