The receivables turnover ratio shows the number of times during a year that the average accounts receivable balance is collected (or "turns over").

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The statement is true. The receivables turnover ratio is calculated by dividing net credit sales by the average accounts receivable balance. This shows how many times the accounts receivable balance is collected during a year, indicating the efficiency of the company's collections process.

The Receivables Turnover Ratio Shows the Number of Times During