The Accounts Receivable Turnover Ratio Measures

question 97

Multiple Choice

The accounts receivable turnover ratio measures:

• A)how many days it takes, on average, to collect receivables.
• B)how many days it takes, on average, to sell the inventory.
• C)how well a company can pay its current liabilities with its current assets.
• D)the number of times per year a company sells goods and collects receivables.

---

Definitions:

Cross-Functional Team

A group of individuals with different expertise and from various departments within an organization, working together toward a common goal.

Competencies

A combination of skills, knowledge, and abilities that individuals possess which enable them to perform tasks effectively.

Competitive Advantage

The attribute that allows an organization to outperform its competitors, usually leading to greater sales or margins and/or retaining more customers.

Marketing Tactics

Specific actions or strategies marketers use to promote a product, service, or brand to targeted customers.