American Furniture Company Has an Accounts Receivable Turnover Ratio of 20

Multiple Choice

American Furniture Company has an accounts receivable turnover ratio of 20 while the industry average is 10.What can be said about American Furniture Company's accounts receivable turnover ratio?

A) American Furniture Company collects accounts receivable slower than the industry average.
B) American Furniture Company collects accounts receivable faster than the industry average.
C) American Furniture Company may have a credit policy that is too lenient in granting credit to new customers.
D) American Furniture Company may have a lax credit department.