The receivables turnover ratio is measured as:

A) Sales plus accounts receivable.
B) Sales divided by accounts receivable.
C) Sales minus accounts receivable, divided by sales.
D) Accounts receivable times sales.
E) Accounts receivable divided by sales.

Receivables Turnover

A ratio that measures a company's efficiency in collecting its sales on credit over a period of time.

Accounts Receivable

Funds owed to a company by customers for products or services that have been delivered or used but not yet paid for.