Indicate the most likely effect of the following changes in credit policy on the receivables turnover ratio

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Indicate the most likely effect of the following changes in credit policy on the receivables turnover ratio and days to collect (+ for increase, – for decrease, and NE for no effect).
a. Granted credit with shorter payment deadlines.
b. Granted credit to less-creditworthy customers.
c. Increased effectiveness of collection methods.
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Fundamentals of Financial Accounting

ISBN: 978-0078025914

5th edition

Authors: Fred Phillips, Robert Libby, Patricia Libby

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