What does an increase in the accounts receivable turnover mean?
A)The collection of receivables is deteriorating.
B)The collection of receivables is improving.
C)The company's liquidity is deteriorating.
D)The company is selling more items on credit.

Question

Quizplus · Accepted Answer

An increase in accounts receivable turnover means that the company is collecting its receivables more quickly, indicating an improvement in collection efficiency. This could result from a more effective credit policy or more aggressive collection efforts.

What Does an Increase in the Accounts Receivable Turnover Mean