Question

Indicate the most likely effect of the following changes in credit policy on the receivables turnover ratio (+ for increase, - for decrease, and (NE) for no effect).
(b) Increased effectiveness of collection methods.

Answer 1

(b) Increased effectiveness of collection methods - It will increase the turnover ratio and decrease the days to collect.

Effectiveness is the functionality of producing a preferred result or the capability to supply preferred output. whilst something is deemed powerful, way it has a supposed or predicted outcome, or produces a deep, vibrant effect.

Effectiveness is the principle noun form of the adjective effective, this means “ok to accomplish a cause; producing the supposed or predicted end result.” (another, less common noun form of effective is efficiency.).

Learn more about effectiveness here: brainly.com/question/14905866

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