The Accounts Receivable Turnover

question 184

Multiple Choice

The accounts receivable turnover

• A) Is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.
• B) Can be used to compute the average collection period.
• C) Is a method of evaluating the solvency of net accounts receivable.
• D) Is only important to internal users of accounting information.

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