The Accounts Receivable Turnover Rate

question 84

Multiple Choice

The accounts receivable turnover rate:

• A)Indicates how many times the receivables were converted into cash during the year.
• B)Is computed by dividing average receivables by sales.
• C)Indicates the average number of days a business waits to make collection on a credit sale.
• D)Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm.

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Definitions:

Compliant Agent

An entity or individual that agrees with and follows specific instructions, rules, or regulations set by an authority.

Reluctant Agent

A person or entity that acts with hesitation or unwillingness, typically in a scenario requiring action or decision-making.

Social Reference

The use of external sources, such as people or standards, to guide behavior and attitudes.

Legitimate Parent

A parent who has legal recognition as the lawful mother or father of a child, often in the context of marital status or legal acknowledgment.