Question

A company has recently implemented an automated online billing and payment processing system for orders it ships to customers. As a result, it has reduced the average number of days between billing a customer and receiving payment by 10 days. How will this affect the receivables turnover ratio?

Answer 1

The receivables turnover ratio will be higher

Step-by-step explanation:

A higher ratio means the company collect its debts on time in a efficient way and almost all its clients pays their debts quickly.