If management wishes to evaluate the delinquency of charge customers, they could use the:
A)rate of return on total assets.
B)rate of return on equity.
C)Accounts Receivable turnover.
D)quick ratio.

Question

Quizplus · Accepted Answer

Accounts Receivable turnover would allow management to evaluate the delinquency of charge customers by measuring how quickly the company is collecting its accounts receivable. A lower turnover may indicate that customers are having difficulty paying and could be a sign of delinquency. The other options do not directly relate to evaluating the delinquency of customers.

If Management Wishes to Evaluate the Delinquency of Charge Customers