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The Receivables Turnover Ratio Measures How Many Times,on Average,a Company

question 21

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The receivables turnover ratio measures how many times,on average,a company collects its receivables during the year.


Definitions:

Cost

The amount of money or resources expended to acquire an asset, produce a product, or deliver a service.

Book Value

The amount of an asset or liability according to its balance sheet account, minus any depreciation, amortization, or impairment costs.

Inventory Items

Goods and materials that a business holds for the ultimate goal of resale or production.

List Price

The suggested retail price of a product or service, before any discounts or adjustments.

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