The receivable turnover is useful in assessing the effectiveness of credit policies.

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Receivable turnover measures how quickly a company is able to collect its accounts receivable from customers. A high receivable turnover ratio indicates that the company has effective credit policies in place, as it is able to collect its outstanding balances quickly. However, a low receivable turnover ratio may indicate that the company's credit policies need to be reassessed, as customers are taking too long to pay their debts. Therefore, receivable turnover is a useful metric in assessing the effectiveness of credit policies.

The Receivable Turnover Is Useful in Assessing the Effectiveness of Credit