The Rate Which Indicates How Quickly a Firm Collects Cash

question 13

Multiple Choice

The rate which indicates how quickly a firm collects cash is the _____ turnover ratio.

• A)cash
• B)accounts receivable
• C)sales receipts
• D)inventory
• E)asset

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Definitions:

Accounting Standards

Agreed-upon principles that govern the reporting and preparation of financial statements, ensuring consistency and comparability across entities.

Accounting Treatment

The method applied in treating transactions and events in the accounting records and financial statements, in accordance with relevant accounting principles and standards.

Current Liability

Financial obligations or debts that are due within one year or within the normal operating cycle of the business.