Which of the Following Statements About the Receivables Turnover Analysis

question 36

Multiple Choice

Which of the following statements about the receivables turnover analysis is correct?

• A)Accounts receivable decline as companies sell on credit.
• B)Accounts receivable increase as companies receive payment.
• C)Receivables turnover refers to how fast receivables are collected.
• D)The days to collect will increase as the receivables turnover increases.