Which of the Following Statements About the Interpretation of the Receivables

Multiple Choice

Which of the following statements about the interpretation of the receivables turnover ratio is not correct?

A) Analysts often interpret a sudden increase in the receivables turnover ratio as a signal of a developing problem.
B) The smaller the receivables turnover ratio the larger the days to collect.
C) A change in the receivables turnover ratio may indicate a change in the company's credit granting policies.
D) A change in the receivables turnover ratio may indicate a change in economic conditions.