The rate which indicates how quickly a firm collects cash is the _____ turnover ratio.
A)cash
B)accounts receivable
C)sales receipts
D)inventory
E)asset

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio measures how quickly a firm collects cash from its credit sales. This ratio is calculated by dividing net credit sales by the average accounts receivable balance during a period of time.

The Rate Which Indicates How Quickly a Firm Collects Cash