Examlex
Which group is incorrect?
Receivables Turnover Ratio
A financial ratio that measures how effectively a company uses its assets by comparing net credit sales with average accounts receivable.
Average Collection Period
The average number of days it takes for a business to receive payments owed by its customers for sales made on credit.
Receivables Turnover Ratio
The Receivables Turnover Ratio measures how effectively a company collects its outstanding credit, calculated by dividing net credit sales by the average accounts receivable.
Notes Receivable
Financial assets representing amounts owed to a company, payable within a certain period.
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