Accounts receivable turnover measures ________.
A) how long it takes to sell merchandise
B) the relationship between credit sales and cash sales
C) the length of time it takes a company to generate cash from its operations
D) how many times average receivables are collected during the year

Question

Quizplus · Accepted Answer

Accounts receivable turnover measures how many times a company collects its average accounts receivable balance during a year, indicating the efficiency of credit sales collection.

Accounts Receivable Turnover Measures ________