Asked by Devyn Murray on Jul 27, 2024
Verified
The account receivable turnover measures:
A) How long it takes to sell accounts receivable to a factor.
B) How often,on average,receivables are received and collected during the period.
C) The relation of cash sales to credit sales.
D) How long it takes to sell merchandise inventory.
E) All of the options are correct.
Accounts Receivable Turnover
A financial metric that measures how efficiently a company collects on its receivables or the speed of their credit sale conversions into cash.
Receivables Collected
The amount of money received from customers in payment of accounts receivable during a given period.
- Acquire insights into the significance and calculation techniques of the accounts receivable turnover.
Verified Answer
TN
Timofey NevzorovJul 29, 2024
Final Answer :
B
Explanation :
The account receivable turnover measures how often, on average, receivables are received and collected during the period.
Learning Objectives
- Acquire insights into the significance and calculation techniques of the accounts receivable turnover.
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