Accounting for IGCSE & O level - Advanced Principles (Section 7 - No. 3)
What does a high accounts receivable turnover ratio indicate?
The company is having trouble collecting its receivables.
The company is selling a lot on credit.
The company is efficiently collecting its receivables.
The company is experiencing declining sales.
ব্যাখ্যা
A higher ratio indicates efficient collection of receivables.