If the accounts receivable turnover ratio increases, the number of days it takes to collect the receivables also increases.

Name: If the accounts receivable turnover ratio increases, the number of days it takes to collect the receivables also increases.
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Question

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An increase in the accounts receivable turnover ratio indicates that a company is collecting its receivables more quickly, which means the number of days to collect receivables decreases.

If the Accounts Receivable Turnover Ratio Increases, the Number of Days