The receivables turnover ratio is calculated by dividing
A)total sales by average gross accounts receivable.
B)total sales by average net accounts receivable.
C)credit sales by average gross accounts receivable.
D)credit sales by ending average net accounts receivable.

Question

Quizplus · Accepted Answer

The receivables turnover ratio is calculated by dividing credit sales by average gross accounts receivable, which helps in assessing how efficiently a company collects its receivables.

The Receivables Turnover Ratio Is Calculated by Dividing