The formula to compute accounts receivable turnover is
A)net credit sales/average net accounts receivable.
B)net credit sales/average inventory.
C)cost of goods sold/average inventory.
D)average net accounts receivable/one day's sales.

Question

Quizplus · Accepted Answer

Accounts receivable turnover measures the frequency with which accounts receivable are collected throughout a period of time. Net credit sales divided by average net accounts receivable gives us the number of times accounts receivable are collected during a given period.

The Formula to Compute Accounts Receivable Turnover Is