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An increase in the firm's receivable turnover ratio means that:

 

it is collecting credit sales more quickly than before.

 

cash sales have decreased.

 

it has initiated more liberal credit terms.

 

inventories have increased.

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تم إضافة السؤال من قبل Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
تاريخ النشر: 2015/03/30
sarah elkassem
من قبل sarah elkassem , financial consultant , acelife

it is collecting credit sales more quickly than before.

An accounting measure used to quantify a firm's effectiveness in extending credit as well as collecting debts. The receivables turnover ratio is an activity ratio, measuring how efficiently a firm uses its assets.

Formula:

Receivables Turnover Ratio

Some companies' reports will only show sales - this can affect the ratio depending on the size of cash sales.

 

Correct answer is it is collecting credit sales more quickly than before.

Means that the firm is collecting credit sales more quickly than before. cash sales have decreased.

ANEESH BABU SURESH
من قبل ANEESH BABU SURESH , Senior Area Sales Manager , NISSAN AUTHORIZED DEALER-PINNACLE MOTORWORKS PVT. LTD.

DEBTORS INCREASED OR CREDIT SALE INCREASED.

Asad Ullah
من قبل Asad Ullah , Financial Analyst , Quantum Enterprise LLC

cash sales have decreased>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

 

 

Wasi Rahman Sheikh
من قبل Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Answer will be t is collecting credit sales more quickly than before ???????????????

My answer is option (A) it is collecting credit sales more quickly than before

Mir Mujtaba Ali
من قبل Mir Mujtaba Ali , Internal Audit Manager , Confidential

it is collecting credit sales more quickly than before<<<<<<<<>>>>>>>>

Ahmed kandil
من قبل Ahmed kandil , Cost Controller , Battour Holding Cpompany

A is the correct answer ....

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