An internal auditor’s preliminary analysis of accounts receivable revealed that the accounts receivable turnover rate had increased. Why would this information be important to the manager?

Question

Accepted Answer

It will influence cash flow which should be taken into consideration for transactions.

Answer

The increase was due to an increase in cash sales.

Answer

The cash discount offered had increased.

Answer

Relaxation of credit policy should be considered.

Crowdly

An internal auditor’s preliminary analysis of accounts receivable revealed that ...

Want instant access to all verified answers on mymodules.dtls.unisa.ac.za?