Looking for the answer to the question below related to Financial Management?
What relationship exists between the average collection period and accounts receivable turnover?
Options:
| A. Both ratios are expressed in number of days B. Both ratios are expressed in number of times receivables are collected per year C. As average collection period increases (decreases) the accounts receivable turnover decreases (increases) D. There is a direct and proportional relationship |
The Correct Answer Is:
- C. As average collection period increases (decreases) the accounts receivable turnover decreases (increases)
Conclusion
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