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:

Monthly Mortgage

The regular payment made to a lender by a borrower for the purchase of real estate, typically consisting of both principal and interest components.

Spending Habits

Patterns or behaviors related to how individuals or households allocate their money for purchases, savings, and other expenditures.

Utilities Bill

A monthly statement that charges individuals or businesses for the consumption of services like water, electricity, gas, and sewage.

House Colour

The chosen paint or external finish of a residential building's exterior.