Accounting for IGCSE & O level - Advanced Principles (Section 5 - No. 27)
What does a high accounts receivable turnover ratio suggest about a company?
The company is experiencing difficulty collecting debts.
The company is selling on credit to fewer customers.
The company is efficiently collecting its debts.
The company's sales are decreasing.
ব্যাখ্যা
A high ratio indicates efficient debt collection.