The Accounts Receivable Turnover Measures

question 137

Multiple Choice

The accounts receivable turnover measures

• A) how frequently during the year the accounts receivable are converted to cash
• B) the number of days of accounts receivable outstanding
• C) the fair market value of accounts receivable
• D) the efficiency of the accounts payable function

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Definitions:

Range of Output

The difference between the maximum and minimum quantities of a product that a company can produce or sell over a certain period.

Diseconomies of Scale

The scenario where a company or firm experiences an increase in marginal costs when output is increased.

Long-Run Average Cost

The average cost per unit of output when all inputs, including physical capital, are variable in the long term.

Upward-Sloping

A graph line that increases in height as it moves from left to right, characteristic of certain supply curves.