Explanation:

• Option A (Correct): An increase in the receivables turnover ratio (and a corresponding decrease in days of sales outstanding) suggests that the company is collecting its receivables more efficiently. This reflects a more effective credit and collection policy.

• Option B (Incorrect): An increase in days of sales outstanding would indicate slower collection of receivables, which is contrary to improved efficiency in credit and collection policies.

• Option C (Incorrect): The number of days of payables measures the average time a company takes to pay its suppliers and is unrelated to the efficiency of credit or collections policies.