If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables.

True / False.

Question

Business

Dexter Wiley

8 August, 03:15

If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables.

True / False.

+3

Answers (1)

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Fernando Shepherd · Answer 1

False

Explanation:

If the receivable turnover for the current year has reduced when compared with the ratio of the preceding year and that has an acceleration of the receivable is false if the form has a ratio of twp then the subsequent receipt of a 60-day trial will cause the ratio to get discounted. This means that the company is seeing more of the delinquent clients.

If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables.True / False.

If the accounts receivable turnover for the current year has decreased when compared with the ratio for the preceding year, there has been an acceleration in the collection of receivables.

True / False.