What is true about the accounts receivable turnover ratio


What is true about the Accounts Receivable Turnover Ratio? a. Generally, higher is better. b. Generally, lower is better. c. It equals accounts receivable divided by credit sales. d. Companies offering a discount to customers for fast payment will likely see a decrease in their accounts receivable turnover ratio. e. A low accounts receivable turnover ratio likely means that a company is denying credit to otherwise worthy customers.

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Financial Management: What is true about the accounts receivable turnover ratio
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