What Does the Accounts Receivable Turnover Ratio Measure

question 82

Multiple Choice

What does the accounts receivable turnover ratio measure?

• A)How quickly accounts receivable turn into cash
• B)How quickly the accounts receivable balance increases
• C)Average balance of accounts receivables
• D)How quickly inventory turns into accounts receivable

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Definitions:

Debtor's Debt

Debtor's debt refers to the monetary obligation owed by a debtor to a creditor, resulting from a loan or another credit agreement.

Real Property

Land and anything permanently attached to it, such as buildings and structures.

Mortgage

A secured loan agreement where property or real estate is used as collateral for borrowing money.

Debtor

A party that has incurred a debt by borrowing money or obtaining goods or services on credit.