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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Definitions:

Social Support

The perception and actuality that one is cared for, has assistance available from other people, and that one is part of a supportive social network.

Optimism

A mental attitude reflecting a belief or hope that the outcome of some specific endeavor, or outcomes in general, will be positive, favorable, and desirable.

Stress Mindset

A person’s belief or attitude towards stress, influencing how they perceive and react to stressful situations.

Behavioral Responses

The actions or reactions of an organism or system in response to stimuli or situations.