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A company’s accounts receivable turnover rate decreased from 6 to 3 over the last three years. What is the most likely cause for the decrease?

1-An increase in the discount offered for early payment.2-A more liberal credit policy.3-A change in net payment due from30 to25 days.4-Increased cash sales.

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Question added by Muhammad Fiaz , GROUP MANAGER ACCOUNTS, FINANCE AND TAX , SMPL Group of Companies
Date Posted: 2014/06/24
Awadh Mahgoub
by Awadh Mahgoub , مدير مشاريع , مؤسسة بيوتنا السعودية للمقاولات

I think no.3 that company change it's policy and this will not encourage clients to buy.

Malik Adnan Qayyum
by Malik Adnan Qayyum , Senior Accountant , SAWACO Water Desalination

2- A more Liberal Credit Policy (this policy extend the favourable terms to buyer-Customers)

Khaled Mohee Eldeen Abbas Mahmoud
by Khaled Mohee Eldeen Abbas Mahmoud , Chartered Accountant # 10465 , Self-employed

2-A more liberal credit policy

Mubashir Shahzad
by Mubashir Shahzad , Oracle Functional Consultant/ERP Business Analyst , Jaffer Business System

more cash sales?

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