A High Receivables Turnover Ratio May Indicate That

question 86

Multiple Choice

A high receivables turnover ratio may indicate that

• 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.
• D)the company's sales have increased.

---

Definitions:

Situational Analysis

Situational analysis refers to the process of evaluating the current state of a situation or environment to make informed decisions.

Weaknesses

Areas of lack or deficiency that may hinder achievement or performance.

Strengths

The inherent capacities or talents that individuals or organizations can leverage to achieve their goals effectively.

Farsighted Organizations

Institutions or groups capable of anticipating future trends, challenges, and opportunities in their strategic planning.