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Which of the following would cause the receivable turnover ratio to increase? (Hint: Receivables Turnover Ratio = Net Sales / Average Net Accounts Receivable.) Reducing

Which of the following would cause the receivable turnover ratio to increase? (Hint: Receivables Turnover Ratio = Net Sales / Average Net Accounts Receivable.)

Reducing the time it takes to collect our customer accounts

Increasing sales revenue at a faster rate than the rate of increase in accounts receivable

Strengthening our credit and collection policies resulting in reduced receivables while sales remain constant

All of the above cause the ratio to increase

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