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If Trade Receivables Turnover Ratio is more than the norm set for it, what will it indicate?

  • Post category:Accountancy
  • Reading time:1 mins read

SOLUTION

A higher trade receivables turnover ratio will indicate that the amount from trade receivables is being collected more quickly.


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Previous PostWhat is the accounting treatment of ‘Stores and Spares’ when the company. (C.B.S.E. Sample Paper, 2017)
Next PostState giving reason, whether the trade receivables turnover ratio will: (a) increase, (b) decrease, or (c) not alter because of ‘cash collected from trade receivables’.

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