Asked by lydia snyder on Jun 11, 2024
Verified
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
Accounts Receivable Turnover
A financial metric that measures how many times a company can turn its accounts receivable into cash within a given period.
- Ascertain and interpret the figures related to accounts receivable turnover and the computation of days' sales in receivables.
Verified Answer
MS
Maria SaccocciaJun 17, 2024
Final Answer :
A
Explanation :
The accounts receivable turnover measures how frequently during the year the accounts receivable are converted to cash. This ratio shows how efficiently a company is collecting its outstanding debts from its customers.
Learning Objectives
- Ascertain and interpret the figures related to accounts receivable turnover and the computation of days' sales in receivables.