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An organization’s accounts receivable turnover rate decreased from 7.3 to 4.3 over the last three years

<p style="text-align:left;"> ? Which of the following is most likely the cause of the decrease</p> <p style="text-align:left;">An increase in the discount offered for early payment  -</p> <p style="text-align:left;">   A more liberal credit policy.  -</p> <p style="text-align:left;">  A change in net payment due, from30 to25 days .  -</p> <p style="text-align:left;">  Increased cash sales.​  -</p>

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Question ajoutée par Utilisateur supprimé
Date de publication: 2014/10/01
georgei assi
par georgei assi , مدير حسابات , المجموعة السورية

Increase cash sales to Atather her on turnover of receivables, as well as credit policy for Atalb role in the turnover of receivables and discount: The answer is 

 

Net change in payment appropriate, from30 days to25.

ABDUL MAJEED KOOTHRADAN
par ABDUL MAJEED KOOTHRADAN , Audit Manager , TS Meera Associates Chartered Accountants

1.  Liberal credit policy increase the receivables turnover 

3.  Cash sale has no direct effect with receivable

2. is the answer reduction in payment period is the answer

Abed  Othman
par Abed Othman , Financial Administrative Assistant , United Nations International for immigration

An increase in the discount offered for early payment   and  may change  in net payment  due  

Utilisateur supprimé
par Utilisateur supprimé

second one is the answer

because

With a liberal credit policy, customers would be taking longer to pay

 

 

Salah Othman Yousef Alshambaati
par Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

The first answer

Muhammad Hassaun
par Muhammad Hassaun , Shared Services Lead , M&P Express Logistics (Pvt.) Ltd.

An increase in the discount offered for early payment

Ibtisam Haider Syed
par Ibtisam Haider Syed , General Accountant , DAR AL AQAR REAL ESTATE LLC

With a liberal credit policy, customers would be taking longer to pay (365/4.3 compared to365/7.3)

Sara Naeem
par Sara Naeem , Trainee Finance officer , Wah Brass Mill

A more credit liberal credit policy.

Abdul Wahab
par Abdul Wahab , Credit Controller , Takween Advanced Industries

Credit Policies

MOHAMED RABIE KHALILL
par MOHAMED RABIE KHALILL , رئيس حسابات , شركة ترانز لاين

I think the first choice

mohammed mohammed danial mahdy
par mohammed mohammed danial mahdy , رئيس حسابات , شركة عايد دحيم الحمود للتجارة والمقاولات - (شركة مساهمه مقفله)

  A change in net payment due, from30 to25 days .  -

 

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