A high accounts receivable turnover ratio indicates
A)the company's sales are increasing.
B)a large proportion of the company's sales are on credit.
C)customers are making payments very quickly.
D)customers are making payments slowly.

Question

Quizplus · Accepted Answer

A high accounts receivable turnover ratio indicates that customers are making payments quickly, as it reflects the efficiency with which a company collects its receivables.

A High Accounts Receivable Turnover Ratio Indicates