关于long-term trade receivable

问题如下：

4. What will be the impact on Stellar in the current year if Martinez’s belief in Conclusion 4 is correct? Compared with the previous year, Stellar’s:

选项：

A.

current ratio will increase.

B.

days sales outstanding (DSO) will decrease.

C.

accounts receivable turnover will decrease.

解释：

B is correct.

Because accounts receivable will be lower than reported in the past, Stellar’s DSO [Accounts receivable/(Revenues/365)] will decrease. Stellar’s accounts receivable turnover (365/days’ sales outstanding) will increase with the lower DSO, giving the false impression of a faster turnover. The company’s current ratio will decrease (current assets will decrease with no change in current liabilities).

解析：A/R减少→current asset减少→current ratio变小，A选项错误。

receivable turnover=Revenue/A/R，分母变小→turnover变大，C选项错误。

DSO=365/receivable turnover，分母变大→DSO变小，B选项正确。