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:

Birthday Cakes

Custom-decorated or pre-made cakes that are often a central dessert at birthday celebrations.

Average Variable Cost

The cost per unit of output that varies with the amount of production, such as materials and labor costs.

Fixed Costs

Financial obligations that do not change with the level of production or output within a certain range.

Birthday Cakes

A cake that is specifically made and decorated to celebrate someone's birthday, often featuring candles representing the age of the individual.