A decrease in accounts receivable turnover ratio is indicative of:
A)an increase in sales revenue.
B)slower-selling inventory.
C)an increase in accounts receivable.
D)a decline in cost of goods solD.Accounts receivable turnover = Net sales/Average accounts receivable.If the accounts receivable turnover decreases,this may be the result of a decrease in net sales or an increase in average accounts receivable.

Question

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A decrease in accounts receivable turnover ratio indicates that the company is taking longer to collect payments from its customers, which could be due to an increase in accounts receivable. This could be caused by a variety of factors such as offering longer payment terms to customers, difficulty in collecting payments, or an increase in sales without a corresponding increase in collections. A decrease in accounts receivable turnover ratio is not indicative of an increase in sales, slower-selling inventory or a decline in cost of goods sold.

A Decrease in Accounts Receivable Turnover Ratio Is Indicative Of