The more rapidly receivables turn over
A) the more rapidly the firm is receiving cash
B) the larger are the firm's sales
C) the smaller is the firm's inventory
D) the larger are the firm's accounts payable

Question

The more rapidly receivables turn over​
A) ​the more rapidly the firm is receiving cash
B) ​the larger are the firm's sales
C) ​the smaller is the firm's inventory
D) ​the larger are the firm's accounts payable

Quizplus · Accepted Answer

The more rapidly receivables turn over, the quicker the firm is collecting cash from its customers. This implies that the firm is more efficient in managing its accounts receivable which can be beneficial for its cash flow and financial health.

The More Rapidly Receivables Turn Over​

The More Rapidly Receivables Turn Over