The Accounts Receivable Turnover Ratio Measures ________

question 158

Multiple Choice

The accounts receivable turnover ratio measures ________.

• A) a company's ability to 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 a company collects the average accounts receivable balance in a year

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Definitions:

Goods Shipped

Refers to products or merchandise that have been packaged and dispatched to a destination.

Location of Markets

Refers to the geographical position of the consumer base or where the demand for products and services exists.

Location Decision

Deciding on the most optimal geographical site for a business's operations, facilities, or stores based on factors like cost, accessibility, and market demand.

Service Firm

A business that primarily offers intangible products, such as expertise or labor, rather than physical goods.