A very low accounts receivable turnover would most likely indicate that:
A)the company is unsuccessful in its efforts to collect cash from customers.
B)the company is successful in its efforts to collect cash from customers.
C)policies for extending credit to customers are too tight.
D)none of the above are true.

Question

Quizplus · Accepted Answer

A low accounts receivable turnover means that the company is taking a longer time to collect cash from customers, indicating that it is not successful in its efforts to collect cash from customers. This could be due to various reasons such as poor credit policies, weak collection efforts, or poor financial health of customers.

A Very Low Accounts Receivable Turnover Would Most Likely Indicate