The accounts receivable turnover is used for which kind of evaluation?
A)Evaluating shares in a company from an investor's perspective
B)The overall profitability of a company
C)The ability of a company to collect its receivables
D)The ability of a company to pay its current liabilities

Question

Quizplus · Accepted Answer

The accounts receivable turnover is a financial ratio that measures the number of times per year that a company collects its average accounts receivable balance. This ratio provides insight into the ability of a company to collect its receivables in a timely manner. Therefore, the answer is C - the ability of a company to collect its receivables.

The Accounts Receivable Turnover Is Used for Which Kind of Evaluation