Question
Over the last 5 years, Theo has seen an increase in it's Accounts Receivable Turnover and a decline in Average Collection Period. These trends
Over the last 5 years, Theo has seen an increase in it's Accounts Receivable Turnover and a decline in Average Collection Period. These trends indicate: (Note: Accounts Receivable Turnover is calculated as net credit sales divided by average net accounts receivable. Average Collection Period is calculated as 365 divided by the Accounts Receivables Turnover.) A. A decline in the company's solvency. B. An improvement in the liquidity of receivables. OC. Improved profitability for the company. D. A decline in the liquidity of receivables.
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