The Accounts Receivable Turnover Is Used for Which Kind of Evaluation

question 3

Multiple Choice

The accounts receivable turnover is used for which kind of evaluation?

• A) The ability of a company to pay its current liabilities
• B) The ability of a company to collect its receivables
• C) The overall profitability of a company
• D) Evaluating stock in a company from an investor's perspective

---

Definitions:

UCC

Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States.

Identical

Refers to being exactly the same in every detail.

Valid Contract

A legal agreement that meets all the required elements, making it enforceable by law.

Effective Upon Dispatch

A legal principle where certain acts, such as sending a notification, are considered effective when they are dispatched, not when they are received.