An increase in the firm’s receivable turnover ratio means that:
A. it is collecting credit sales more quickly than before.
B. cash sales have decreased.
C. it has initiated more liberal credit terms.
D. inventories have increased.
Answer:A
An increase in the firm’s receivable turnover ratio means that:
A. it is collecting credit sales more quickly than before. B. cash sales have decreased. C. it has initiated more liberal credit terms. D. inventories have increased.