A low accounts receivable turnover ratio could indicate that:
A) few customers are defaulting on their debts.
B) the company is making collections from its customers very quickly..
C) the company is making collections from its customers very slowly.
D) a small proportion of the company's sales are credit sales.

Question

Quizplus · Accepted Answer

A low accounts receivable turnover ratio means that it is taking the company a long time to collect payments from its customers, indicating slow collections.

A Low Accounts Receivable Turnover Ratio Could Indicate That