What Does a High Receivable Turnover Ratio Indicate

question 209

Multiple Choice

What does a high receivable turnover ratio indicate?

• A) Customer payments are collected relatively soon after the sale has been made.
• B) Sales are growing.
• C) Credit sales are much greater than cash sales.
• D) Cash collections are sluggish, taking longer to collect.

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Definitions:

Dissolved Duos

A term referring to pairs, such as relationships or partnerships, that have been terminated or ended.

Cooperative Colleagues

Workplace associates who work together effectively in a collaborative environment.

FUTA Payable

A federal tax liability owed by employers to fund the unemployment benefits system.

FICA-OASDI

Represents the Federal Insurance Contributions Act's Old-Age, Survivors, and Disability Insurance, a U.S. payroll tax that funds Social Security.