The accounts receivable turnover measures
A) how frequently during the year the accounts receivable are converted to cash
B) the number of days of accounts receivable outstanding
C) the fair market value of accounts receivable
D) the efficiency of the accounts payable function

Question

Quizplus · Accepted Answer

The accounts receivable turnover measures how frequently during the year the accounts receivable are converted to cash. This ratio shows how efficiently a company is collecting its outstanding debts from its customers.

The Accounts Receivable Turnover Measures