Explain an increase in receivables turnover

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Problem 1: Which of the following would best explain an increase in receivables turnover (defined as revenue divided by accounts receivables.?

Option 1: The company adopted new credit policies last year and began offering credit to customers with weak credit histories.

Option 2: The company had wrote off a large amount of its receivables in which no prior provision for bad debts had been made.

Option 3: To match the terms offered by its closest competitor, the company adopted new payment terms now requiring net payment within 90 days rather than 20 days, which had been its previous requirement.

Option 4: All the above statements are correct.

Option 5: None of the above.

Reference no: EM132617683

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