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

Question

Quizplus · Accepted Answer

Accounts receivable turnover, a measure of how many times a year a company collects its receivables, is measured by dividing sales by accounts receivable.

Accounts Receivable Turnover Is Computed by Dividing