Question: What does a decrease in accounts receivable (trade debtors) days potentially indicate?I. The use of more liberal selling terms, such as offering longer payment terms
What does a decrease in accounts receivable (trade debtors) days potentially indicate?I. The use of more liberal selling terms, such as offering longer payment terms to customers.II. Increased competitive pressures, such as a competitor offering longer payment terms on purchases.III. Poor economic conditions causing customers to have a more difficult time paying their bills.IV. Improved collection procedures, such as placing more emphasis on the timely collection of receivables.
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