Asked by
Emily Prichard
on Oct 09, 2024
Verified
All other things the same, when a customer purchases an item for cash, the accounts receivable turnover ratio increases.
Accounts Receivable Turnover
A financial ratio that measures how effectively a company is collecting on its credit sales by dividing net credit sales by average accounts receivable.
- Gain knowledge in the computation and interpretation of key financial metrics.
- Comprehend the relationship between sales and receivables management.
Verified Answer
BW
Learning Objectives
- Gain knowledge in the computation and interpretation of key financial metrics.
- Comprehend the relationship between sales and receivables management.
Related questions
All Other Things the Same, When a Company Increases Its ...
All Other Things the Same, Purchasing Merchandise Inventory Would Have ...
The Dividend Payout Ratio Is Equal to the Dividend Per ...
The Formula for the Times Interest Earned Ratio Is: Times ...
The Formula for the Average Sale Period Is: Average Sale ...