An increase in the firm's receivable turnover ratio means that:

Question

it is collecting credit sales more quickly than before.

cash sales have decreased.

it has initiated more liberal credit terms.

inventories have increased.

sarah elkassem · Answer

it is collecting credit sales more quickly than before.

Deleted user · Answer

Agree with all experts

Thank you

Deleted user · Answer

An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.

Formula:

Receivables Turnover Ratio

Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.

Correct answer is it is collecting credit sales more quickly than before.

Deleted user · Answer

Means that the firm is collecting credit sales more quickly than before. cash sales have decreased.

ANEESH BABU SURESH · Answer

DEBTORS INCREASED OR CREDIT SALE INCREASED.

Asad Ullah · Answer

cash sales have decreased>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Wasi Rahman Sheikh · Answer

Answer will be t is collecting credit sales more quickly than before ???????????????

Ayoub Tartir , PMP, GWCPgM, CISA, CISSP, CAP, CSSLP, FITSP-D, CEH, CHFI, CCNA, CCNA Security, Security+, Network+ · Answer

My answer is option (A) it is collecting credit sales more quickly than before

Mir Mujtaba Ali · Answer

it is collecting credit sales more quickly than before<<<<<<<<>>>>>>>>

Deleted user · Answer

Answer should be (cash sales have decreased).

Ahmed kandil · Answer

A is the correct answer
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