The accounts receivable turnover ratio measures:
A)how many days it takes,on average,to sell the inventory.
B)how well a company can pay its current liabilities with its current assets.
C)how many days it takes,on average,to collect receivables.
D)the number of times per year a company sells goods and collects receivables.

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio measures how many times a company collects its average accounts receivable balance in a year, indicating the efficiency of the company's credit and collection policies.

The Accounts Receivable Turnover Ratio Measures