The Accounts Receivable Turnover Ratio Indicates How Rapidly Customers Pay

question 41

True/False

The accounts receivable turnover ratio indicates how rapidly customers pay their bills.

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Definitions:

Units per Year

A measure of production output or activity volume, indicating the number of units produced or sold within a year.

ROI Computation

The calculation of Return on Investment, which measures the gain or loss generated on an investment relative to the amount of money invested.

Net Book Value

The value of an asset after accounting for depreciation or amortization found on a company's balance sheet.

Operating Expense

Expenses incurred from a company's operational activities, excluding cost of goods sold, such as selling, general, and administrative expenses.