Which of the following is a sign that a company cannot quickly turn its receivables into cash?
A)A high receivables turnover ratio.
B)A low receivables turnover ratio.
C)A low average collection period.

Question

Quizplus · Accepted Answer

A low receivables turnover ratio indicates that the company is not collecting its accounts receivable quickly, which means it may have difficulty turning them into cash. A high receivables turnover ratio and a low average collection period are signs that the company is able to quickly convert its receivables into cash.

Which of the Following Is a Sign That a Company