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An organization’s accounts receivable turnover rate decreased from 7.3 to 4.3 over the last three years

<p style="text-align:left;"> ? Which of the following is most likely the cause of the decrease</p> <p style="text-align:left;">An increase in the discount offered for early payment  -</p> <p style="text-align:left;">   A more liberal credit policy.  -</p> <p style="text-align:left;">  A change in net payment due, from30 to25 days .  -</p> <p style="text-align:left;">  Increased cash sales.​  -</p>

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Question added by Deleted user
Date Posted: 2014/10/01
georgei assi
by georgei assi , مدير حسابات , المجموعة السورية

Increase cash sales to Atather her on turnover of receivables, as well as credit policy for Atalb role in the turnover of receivables and discount: The answer is 

 

Net change in payment appropriate, from30 days to25.

ABDUL MAJEED KOOTHRADAN
by ABDUL MAJEED KOOTHRADAN , Audit Manager , TS Meera Associates Chartered Accountants

1.  Liberal credit policy increase the receivables turnover 

3.  Cash sale has no direct effect with receivable

2. is the answer reduction in payment period is the answer

Abed Hasan Abdullah  Othman
by Abed Hasan Abdullah Othman , general accountant , Trading company

An increase in the discount offered for early payment   and  may change  in net payment  due  

second one is the answer

because

With a liberal credit policy, customers would be taking longer to pay

 

 

Salah Othman Yousef Alshambaati
by Salah Othman Yousef Alshambaati , مدير ادارة الحسابات , شركة انفال الجديدة للتجارة والمقاولات

The first answer

Muhammad Hassaun
by Muhammad Hassaun , Shared Services Lead , M&P Express Logistics (Pvt.) Ltd.

An increase in the discount offered for early payment

Ibtisam Haider Syed
by Ibtisam Haider Syed , General Accountant , DAR AL AQAR REAL ESTATE LLC

With a liberal credit policy, customers would be taking longer to pay (365/4.3 compared to365/7.3)

Sara Khan
by Sara Khan , financial and admin assistant , Ministry Of Defence

A more credit liberal credit policy.

Abdul Wahab
by Abdul Wahab , Credit Controller , Takween Advanced Industries

Credit Policies

MOHAMED RABIE KHALILL
by MOHAMED RABIE KHALILL , رئيس حسابات , شركة ترانز لاين

I think the first choice

mohammed mohammed danial mahdy
by mohammed mohammed danial mahdy , رئيس حسابات , شركة عايد دحيم الحمود للتجارة والمقاولات - (شركة مساهمه مقفله)

  A change in net payment due, from30 to25 days .  -

 

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