Which of the following is most likely to indicate that a firm is experiencing difficulty in collecting its receivables?
A) Its accounts receivable turnover decreases from 10 to 8.
B) Its accounts receivable turnover increases from 8 to 10.
C) Its average collection period decreases from 36 to 32.
D) Its average collection period increases from 25 to 28.

Question

Quizplus · Accepted Answer

A decrease in accounts receivable turnover indicates that the firm is taking longer to collect its receivables, suggesting potential difficulties in collection.

Which of the Following Is Most Likely to Indicate That