The Ratio That Indicates How Many Days It Takes to Turn

question 85

Multiple Choice

The ratio that indicates how many days it takes to turn accounts receivable into cash is the:

• A) accounts receivable turnover ratio.
• B) average turnover ratio.
• C) average collection period.
• D) quick assets turnover ratio.

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Definitions:

Psychosomatic

Pertaining to or involving both mind and body; usually refers to physical illnesses or symptoms that are influenced by emotional or mental factors.

Somatic

Relating to or affecting the body, especially as distinct from the mind or emotions.

Somatoform

Disorders characterized by physical symptoms that suggest a medical condition, but are not fully explained by a medical condition, substance use, or another mental disorder.

Psychosis

A mental disorder characterized by a disconnection from reality, which might include hallucinations, delusions, and impaired thought processes.