The Account Receivable Turnover Measures

question 190

Multiple Choice

The account receivable turnover measures:

• A) How long it takes to sell accounts receivable to a factor.
• B) How long it takes to sell merchandise inventory.
• C) The relation of cash sales to credit sales.
• D) How often, on average, receivables are received and collected during the period.
• E) All of the options are correct.

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Definitions:

Z-score

A standardized score that indicates how many standard deviations a data point is from the mean.

Continuous Random Variable

A variable that can assume an infinite number of values within a given range, where the outcomes cannot be counted but are measured.

Density Function

A mathematical function that describes the probability distribution of a continuous random variable, indicating how the total probability is distributed over the various possible values the variable can take.

Symmetric

A characteristic of shapes, equations, or other entities that remain unchanged when reflected, rotated, or transformed in specific ways.