All other things equal,a company is better off when its receivable turnover ratio:
A)and its days-to-collect measure are both low.
B)is high and its days-to-collect measure is low.
C)and its days-to-collect measure are both high.
D)is low and its days-to-collect measure is high.

Question

Quizplus · Accepted Answer

A high receivable turnover ratio indicates that a company is collecting its receivables quickly, whereas a low days-to-collect measure indicates that it is taking less time to collect on its outstanding receivables. Therefore, a high receivable turnover ratio and low days-to-collect measure mean that a company is both collecting its receivables quickly and taking less time to do so, which is ideal for a company.

All Other Things Equal,a Company Is Better Off When Its