A decrease in receivables turnover ratio is indicative of:
A)an increase in sales revenue.
B)slower-selling inventory.
C)an increase in accounts receivable.
D)a decline in cost of goods sold.

Question

Quizplus · Accepted Answer

Receivable turnover = Net sales ÷ Average net receivables
If the receivables turnover decreases,this may be the result of a decrease in net sales or an increase in average net receivables.

A Decrease in Receivables Turnover Ratio Is Indicative Of