The accounts receivable turnover measures

A) how frequently during the year the accounts receivable are converted to cash
B) the number of days of accounts receivable outstanding
C) the fair market value of accounts receivable
D) the efficiency of the accounts payable function

Question

Pakjira Sataneegun · Accepted Answer

Final Answer : A, Explanation :  The accounts receivable turnover measures how frequently during the year the accounts receivable are converted to cash. It is calculated by dividing net credit sales by average accounts receivable for the period. A high accounts receivable turnover indicates that a company is efficiently collecting its accounts receivable and converting them to cash.

The accounts receivable turnover measures

A) how frequently during the year the accounts receivable are converted to cash
B) the number of days of accounts receivable outstanding
C) the fair market value of accounts receivable
D) the efficiency of the accounts payable function

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Learning Objectives

Learning Objectives

Related questions

The accounts receivable turnover measuresA) how frequently during the year the accounts receivable are converted to cashB) the number of days of accounts receivable outstandingC) the fair market value of accounts receivableD) the efficiency of the accounts payable function

Definitions

Learning Objectives

Learning Objectives

Related questions

The accounts receivable turnover measures

A) how frequently during the year the accounts receivable are converted to cash
B) the number of days of accounts receivable outstanding
C) the fair market value of accounts receivable
D) the efficiency of the accounts payable function