The Accounts Receivable Turnover Ratio Captures the Speed of Cash

question 97

Multiple Choice

The accounts receivable turnover ratio captures the speed of cash collections from credit customers and is calculated as follows:

• A)average accounts receivable divided by sales revenue.
• B)sales revenue divided by average accounts receivable.
• C)sales revenue plus average accounts receivable.
• D)sales revenue minus average accounts receivable.
• E)sales revenue times average accounts receivable.

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Definitions:

Sentimental

Characterized by or prompted by feelings of tenderness, sadness, or nostalgia.

Cultural Diversity

Cultural diversity refers to the presence of varied cultural backgrounds, traditions, and perspectives within a community or organization.

Diverse Customer Base

A clientele composed of individuals from various demographic, geographic, and cultural backgrounds, reflecting a broad spectrum of preferences and needs.

Greater Competition

An increase in the number of competitors in a market, which can lead to improvements in quality, innovation, and pricing for consumers.