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?

Question

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.

Awadh Mahgoub · Answer

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

Malik Adnan Qayyum · Answer

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

Khaled Mohee Eldeen Abbas Mahmoud · Answer

2-A more liberal credit policy

Mubashir Shahzad · Answer

more cash sales?

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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?

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