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A higher accounts receivable turnover ratio means

This question belongs to Commerce Financial Management
Financial Management
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A higher accounts receivable turnover ratio means__________.

Answer & Solution
Correct Answer: Option A
A higher accounts receivable turnover ratio mean lower debt collection period. Debtor Collection Period indicates the average time taken to collect trade debts. In other words, a reducing period of time is an indicator of increasing efficiency.
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2 Comments
Adhyanksa Jaiswal
Adhyanksa Jaiswal 6 years ago
Correct answer is A, A high receivables turnover ratio can indicate that a company’s collection of accounts receivable is efficient and that the company has a high proportion of quality customers that pay their debts quickly.
Jitendra Kumar
Jitendra Kumar 8 years ago
answer must be A
please comment
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