An increase in which one of the following is most apt to be an indicator of an accounts receivable policy that is too restrictive?
A) bad debts
B) accounts receivable turnover rate
C) accounts receivable period
D) credit sales
E) operating cycle

Question

Quizplus · Accepted Answer

A high accounts receivable turnover rate indicates that the company is collecting its receivables quickly, which may suggest that the credit policy is too restrictive, limiting sales opportunities.

An Increase in Which One of the Following Is Most