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

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing net credit sales by average receivables, which measures how efficiently a company collects its receivables.

The Accounts Receivable Turnover Is Computed by Dividing