A company's effectiveness regarding its collection efforts can be measured by using the
A)working capital ratio.
B)acid test ratio.
C)accounts payable turnover.
D)accounts receivable turnover.

Question

Quizplus · Accepted Answer

The accounts receivable turnover measures the number of times accounts receivable are collected during a period, indicating how effectively a company collects its outstanding debts. Therefore, this is the best choice for measuring a company's effectiveness regarding its collection efforts.

A Company's Effectiveness Regarding Its Collection Efforts Can Be Measured