Question
The below questions will relate to the information for Luminus Corporation. Luminus Corporation's books revealed the following for 2016 and 2015: For the number of
The below questions will relate to the information for Luminus Corporation. Luminus Corporation's books revealed the following for 2016 and 2015: For the number of days to collect the average receivable (365 days/accounts receivable turnover, where the accounts receivable turnover = sales/average accounts receivable), which one of the following is correct? is taking the Luminus longer to collect compared to its dit terms, then it may indicate that the company is ficient in its collection operations or that some of the customers' accounts may not collectible. A higher number of days to collect could reflect Luminus's effective marketing strategy such as 'Don't pay until next year'. Both are correct Both are incorrect
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