Asked by
Mujtaba Ahmed
on Nov 15, 2024
Verified
Noble Company's accounts receivable turnover was 24.6 in Year 1 and 18.2 in Year 2. This change in accounts receivable turnover indicates:
A) the company is not selling its inventory as fast.
B) the company is selling its inventory faster.
C) the company's customers are paying faster.
D) the company's customers are paying slower.
Accounts Receivable Turnover
A financial metric that measures how often a company collects its average accounts receivable amount within a given period.
Selling Inventory
Selling inventory consists of the process in which businesses sell their stocked goods or merchandise to customers.
- Understand the significance of changes in accounts receivable turnover over different periods.
Verified Answer
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Learning Objectives
- Understand the significance of changes in accounts receivable turnover over different periods.
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