If management wishes to determine the average degree of delinquency of the charge customers,they could use the:
A)rate of return on total assets.
B)rate of return on common stockholders' equity.
C)accounts receivable turnover.
D)quick (acid test)ratio.

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio measures how quickly a company collects its accounts receivable from customers. A higher turnover ratio indicates that customers are paying their bills more quickly, while a lower ratio indicates that customers are paying more slowly or not at all. Therefore, by using the accounts receivable turnover ratio, management can determine the average degree of delinquency of the charge customers.

If Management Wishes to Determine the Average Degree of Delinquency