The Accounts Receivable Turnover Ratio Measures

question 57

Multiple Choice

The accounts receivable turnover ratio measures:

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

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Definitions:

Pore Spaces

Voids or gaps between soil particles or rock, which can hold air or water and are critical for fluid flow and organisms.

Water Table

The level below which the ground is completely saturated with water, marking the boundary between the area's unsaturated soil and its aquifer.

Overpumping

Pumping of groundwater at a rate that causes severe lowering of the water table in the aquifer or other detrimental effects.

Horizontal

Describes a direction parallel to the ground or the horizon; at 90 degrees to the vertical.