A High Accounts Receivable Turnover Ratio Indicates

question 10

Multiple Choice

A high accounts receivable turnover ratio indicates

• A) Customers are making payments quickly
• B) A large portion of the company's sales are on credit
• C) Many customers are not paying their receivables in a timely manner
• D) The company's sales have increased

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Definitions:

Retail Storage

The process and facility used for keeping goods intended for sale in the retail sector until they are needed on the sales floor.

Customer Pickup

A logistics service where customers retrieve their purchased goods directly from the retailer's or supplier's location.

Online Order

A method of purchasing goods or services via the internet.

Transportation Cost

Expenses associated with moving goods or passengers from one location to another, which can include fuel, labor, and vehicle maintenance.