If the Debtors Turnover Ratio Changes from 45 Days to 40

question 53

Multiple Choice

If the debtors turnover ratio changes from 45 days to 40 days this indicates that:

• A)it is taking longer to collect money from trade debtors.
• B)the time taken to collect money from trade debtors is decreasing
• C)the time taken to sell inventory is increasing
• D)none of the options is correct

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