A high accounts receivable turnover rate may indicate all of the following except
A)fast collection of accounts receivables.
B)greater liquidity.
C)credit terms that are too tight.
D)inventory levels are high.

Question

Quizplus · Accepted Answer

A high accounts receivable turnover rate indicates that a company is collecting its accounts receivable quickly, which leads to greater liquidity. However, it does not necessarily indicate that credit terms are too tight or that inventory levels are high.

A High Accounts Receivable Turnover Rate May Indicate All of the Following