An acceleration in the collection of receivables will tend to cause the accounts receivable turnover to
A) decrease
B) remain the same
C) either increase or decrease
D) increase

Question

Quizplus · Accepted Answer

If the collection of receivables is accelerated, it means that the company is collecting the receivables faster, which will result in a higher frequency of turnover. Thus, the accounts receivable turnover will increase.

An Acceleration in the Collection of Receivables Will Tend to Cause