A is corrent. Collection of a receivable results in an increase in cash and a decrease in the accounts receivable balance. The accounts receivable turnover ratio is computed by dividing net credit sales by the average net accounts receivable balance. Collection of a receivable reduces the average net accounts receivable balance. Thus the receivable turnover ratio increases.
B is incorrect. Current assets would not change as a result of the collection.
C is incorrect. Quick ratio would not change as a result of the collection.
D is incorrect. This transaction does not affect cost of goods sold or inventory, thus the inventory ratio is unaffected.
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