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.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable turnover ratio means that the company is taking longer to collect payments from its customers, which indicates an increase in accounts receivable.

A Decrease in Accounts Receivable Turnover Ratio Is Indicative Of