The _____,an asset utilization ratio,indicates how many times a firm collects its accounts receivable in one year.
A)inventory turnover
B)return on equity
C)accounts payable
D)receivables turnover
E)asset turnover

Question

Quizplus · Accepted Answer

The receivables turnover ratio is an asset utilization ratio that measures how many times a business can turn its accounts receivable into cash within a given period, typically a year. This ratio is crucial for assessing the efficiency with which a company manages its credit sales and collections.

The _____,An Asset Utilization Ratio,indicates How Many Times a Firm