Which of the following is a positive sign that a company can quickly turn its receivables into cash? a. A low receivables turnover ratio.b. A high receivables turnover ratio.c. A low average collection period.d. Both a high receivables turnover ratio and a low average collection period.
Which of the following is a positive sign that a company can quickly turn its receivables into cash? a. A low receivables turnover ratio.b. A high receivables turnover ratio.c. A low average collection period.d. Both a high receivables turnover ratio and a low average collection period.
Chapter9: Accounting For Receivables
Section: Chapter Questions
Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...
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Which of the following is a positive sign that a company can quickly turn its receivables into cash?
a. A low receivables turnover ratio.
b. A high receivables turnover ratio.
c. A low average collection period.
d. Both a high receivables turnover ratio and a low average collection period.
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