Which of the Following Statements About Receivables Turnover Analysis Is

question 238

Multiple Choice

Which of the following statements about receivables turnover analysis is correct?

• A)The receivables turnover ratio indicates how many times,on average,the process of selling to and collecting from customers occurs during the accounting period.
• B)Companies of similar size in different industries tend to have similar receivables turnover ratios.
• C)A high turnover ratio may suggest the company is allowing too much time for customers to pay.
• D)The days to collect ratio is found by dividing the receivables turnover ratio by 365 days.

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