A Company Currently Allows Its Customers to Take 30 Days

Multiple Choice

A company currently allows its customers to take 30 days to pay their accounts receivable. Almost all of its customers pay in around 30 days. If a company changes its policy, and allows customers to wait 60 days before paying, it is likely that in future years

A) Accounts receivable turnover will increase from about 12 to about 24.
B) Accounts receivable turnover will decrease from about 12 to about 6.
C) Accounts receivable turnover will increase from around 6 to about 12.
D) Accounts receivable turnover will decrease from around 6 to around 3.