The Ratio That Indicates How Many Days It Takes to Turn

question 85

Multiple Choice

The ratio that indicates how many days it takes to turn accounts receivable into cash is the:

• A) accounts receivable turnover ratio.
• B) average turnover ratio.
• C) average collection period.
• D) quick assets turnover ratio.

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Definitions:

Incentive Plan

A program designed to motivate and reward employees' performance by offering benefits, bonuses, or compensations.

Team-oriented

A focus or emphasis on working collaboratively in groups rather than individually for better outcomes.

Work Environment

The setting, conditions, and culture that employees experience in their place of employment.

Positive Reinforcement

The act of encouraging a desired behavior by offering a reward or positive outcome when the behavior is performed.