Which of the following is the correct accounts receivable turnover calculation?
A) Revenues / Accounts receivable
B) Accounts receivable /Revenues
C) Accounts receivable / Current liabilities
D) Accounts receivable / Average daily sales
E) (Cash + Marketable securities + Accounts receivable) / Current liabilities

Question

Quizplus · Accepted Answer

The accounts receivable turnover calculation is correctly represented by dividing revenues by accounts receivable, which measures how many times a company can turn its accounts receivable into cash within a period.

Which of the Following Is the Correct Accounts Receivable Turnover