If the number of days of revievables is rising then it means the ac recievables turnover ratio is falling which can happen if
– The credit sales is low
-avg debtors is high
Yaha sir ne likhaya hai ki credit sales increase hoga wo kaise?
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this is completely different, here sir is talking about decrease in collection period inspite of increase in receivables
so credit sales is going up which is resulting in increase in receivables, but they are getting colklected faster thereby reducing the collection period