As a company's accounts receivable turnover ratio increases from one year to the next, they will find that the number of days' sales in receivables:

Question

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A higher accounts receivable turnover ratio means that the company is collecting its receivables faster. Therefore, the number of days' sales in receivables (which is the average number of days it takes to collect receivables) will decrease.

As a Company's Accounts Receivable Turnover Ratio Increases from One