Accounts Receivable Turnover Measures

question 38

Multiple Choice

Accounts receivable turnover measures

• A) How long it takes to sell inventory on credit
• B) How often a company converts its average accounts receivable balance into cash during the period
• C) Measures the relationship of cash sales to credit sales
• D) How long it takes to sell inventory on credit and how often a company converts its average accounts receivable balance into cash during the period
• E) How often a company converts its average accounts receivable balance into cash during the period and measures the relationship of cash sales to credit sales

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