A high average days outstanding for accounts receivable 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 high average days outstanding for accounts receivable means the company is taking a long time to collect payments from its customers. This suggests that the company is not making collections from its customers very quickly.

A High Average Days Outstanding for Accounts Receivable Could Indicate