Accounts Receivable Turnover Measures

question 123

Multiple Choice

Accounts receivable turnover measures:

• A)How often a company converts its average accounts receivable balance into cash during the period.
• B)How long it takes to sell inventory on credit.
• C)Measures the relationship of cash sales to credit sales.
• D)How long it takes to sell inventory on credit and how often a company converts its average accounts receivable balance into cash during the period.
• E)How often a company converts its average accounts receivable balance into cash during the period and measures the relationship of cash sales to credit sales.

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