A high receivables turnover ratio may indicate that
A) customers are making payments quickly.
B) a large portion of the company's sales are on credit.
C) many customers are not paying their receivables.
D) the company's sales have increased.

Question

Quizplus · Accepted Answer

A high receivables turnover ratio suggests that customers are making payments quickly, as it indicates that the company is efficiently collecting its receivables.

A High Receivables Turnover Ratio May Indicate That