The lower the accounts receivable turnover rate,the longer a company must wait to collect from its credit customers.

Name: The lower the accounts receivable turnover rate,the longer a company must wait to collect from its credit customers.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Accounts receivable turnover rate measures the efficiency of a company in collecting its credit sales. A lower turnover rate means the company is taking more time to collect payments from its customers, which is an indication of poor cash flow management.

The Lower the Accounts Receivable Turnover Rate,the Longer a Company