If trade receivables are collected quickly,it may indicate which of the following?
A)The trade receivables turnover is low.
B)The company's credit policies may be overly stringent.
C)Credit is often granted to poor credit risks.
D)The company is becoming more profitable.

Question

Quizplus · Accepted Answer

If trade receivables are collected quickly, it may indicate that the company's credit policies are overly stringent, as they may be requiring customers to pay more quickly than necessary.

If Trade Receivables Are Collected Quickly,it May Indicate Which of the Following