Accounts receivable turnover is computed by dividing:
A)Sales by Accounts Receivable.
B)Accounts receivable by Sales.
C)Cost of goods sold by Inventory.
D)365 by Accounts Receivable.

Question

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Accounts Receivable Turnover is a measure of how quickly a company collects its outstanding debts. It is computed by dividing sales by accounts receivable. This formula expresses the relationship between the amount of credit sales generated by a business and the amount of accounts receivable that it maintains.

Accounts Receivable Turnover Is Computed by Dividing