Asked by
Kakha Davitashvili
on Nov 13, 2024Verified
An increase in the accounts receivable turnover may be due to a change in how credit is granted and/or in collection practices.
Accounts Receivable Turnover
A financial ratio that measures how efficiently a company collects revenue from its credit customers by comparing net credit sales to average accounts receivable.
Credit
An accounting entry that increases liabilities and equity or decreases an asset or expense account.
- Determine and clarify the role of diverse financial ratios in analyzing a company's financial status.
- Understand the effects of evolving financial ratios over periods.
Verified Answer
SB
Learning Objectives
- Determine and clarify the role of diverse financial ratios in analyzing a company's financial status.
- Understand the effects of evolving financial ratios over periods.
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