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.

---

Definitions:

Collaborative Empiricism

A therapeutic technique in cognitive therapy that involves working jointly with the client to empirically test the validity of specific thoughts and beliefs.

Beck's Cognitive

Beck's Cognitive Therapy, developed by Aaron T. Beck, is a therapeutic approach that identifies and changes negative and dysfunctional thoughts and beliefs to treat psychological disorders.

Psychotherapy

The treatment of mental disorder by psychological rather than medical means.

Research System

An organized set of principles and methodologies utilized for conducting research and generating new knowledge.