Accounts receivable turnover is calculated by:
A) Dividing net sales by average accounts receivable.
B) Dividing net sales by average accounts receivable and multiplying by 365.
C) Dividing average accounts receivable by net sales.
D) Dividing average accounts receivable by net sales and multiplying by 365.
E) Dividing net income by average accounts receivablE.

Question

Quizplus · Accepted Answer

Accounts receivable turnover is calculated by dividing net sales by average accounts receivable, which measures how efficiently a company collects its receivables.

Accounts Receivable Turnover Is Calculated By