Net sales divided by Average accounts receivable,net is the:
A)Days' sales uncollected.
B)Average accounts receivable ratio.
C)Current ratio.
D)Profit margin.
E)Accounts receivable turnover ratio.

Question

Quizplus · Accepted Answer

The calculation described in the question is for the accounts receivable turnover ratio, which measures how many times a company's accounts receivable are collected and replaced during a year.

Net Sales Divided by Average Accounts Receivable,net Is The