Net sales divided by average accounts receivable is equal to the:
A)Days' sales uncollected.
B)Average accounts receivable ratio.
C)Current ratio.
D)Profit margin.
E)Accounts receivable turnover ratio.

Question

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Net sales divided by average accounts receivable is equal to the accounts receivable turnover ratio. This ratio helps in determining how efficiently a company collects its outstanding debts from customers.

Net Sales Divided by Average Accounts Receivable Is Equal to The