Accounts Receivable Turnover Is an Example of Which Type of Ratio

question 55

Multiple Choice

Accounts receivable turnover is an example of which type of ratio?

• A) profitability
• B) activity
• C) liquidity
• D) leverage

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Definitions:

Group Method

A depreciation technique that treats a collection of assets as a single entity for depreciation purposes, often used for assets that are similar in nature and have approximately the same useful lives.

Record Keeping

The systematic process of organizing and maintaining documents, records, and information to ensure accuracy, accessibility, and compliance.

Composite Methods

Depreciation techniques that combine multiple assets into a single group or pool and apply a uniform depreciation rate to the collective group, irrespective of individual asset life.