[amp_mcq option1=”lower debt collection period” option2=”higher debt collection period” option3=”lower sales” option4=”higher sales” correct=”option1″]<\/p>\n
The correct answer is: A. lower debt collection period.<\/p>\n
A higher accounts receivable turnover ratio means that a company is collecting its receivables more quickly. This is a good thing, as it means that the company is not having to wait as long to get paid for its goods or services. A lower debt collection period means that a company is able to turn its receivables into cash more quickly, which can improve its cash flow and profitability.<\/p>\n
Option B is incorrect because a higher accounts receivable turnover ratio means that a company is collecting its receivables more quickly, not more slowly.<\/p>\n
Option C is incorrect because a higher accounts receivable turnover ratio does not necessarily mean that a company has lower sales. It is possible for a company to have high sales and a high accounts receivable turnover ratio, if it is able to collect its receivables quickly.<\/p>\n
Option D is incorrect because a higher accounts receivable turnover ratio does not necessarily mean that a company has higher sales. It is possible for a company to have low sales and a high accounts receivable turnover ratio, if it is not able to collect its receivables quickly.<\/p>\n","protected":false},"excerpt":{"rendered":"
[amp_mcq option1=”lower debt collection period” option2=”higher debt collection period” option3=”lower sales” option4=”higher sales” correct=”option1″]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[945],"tags":[],"class_list":["post-43665","post","type-post","status-publish","format-standard","hentry","category-financial-management","no-featured-image-padding"],"yoast_head":"\n