The Accounts Receivable Turnover Ratio Measures

question 59

Multiple Choice

The accounts receivable turnover ratio measures:

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

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