The Account Receivable Turnover Is Computed by Taking the Average

question 59

True/False

The account receivable turnover is computed by taking the average net accounts receivable and dividing by the net credit sales.

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Definitions:

Planning

Process of anticipating future events and conditions and determining courses of action for achieving organizational objectives.

Organizational Objectives

Specific, measurable goals set by a business or organization to guide its operations and strategic decisions.

Management

The process of planning, organizing, directing, and controlling the resources of an organization to achieve its goals efficiently and effectively.

Analyze

To examine something in detail in order to understand it better or discover more about it.