Accounts receivable turnover measures:
A) How often a company converts its average accounts receivable into cash during the period and the relationship of cash sales to credit sales.
B) How often a company converts its average accounts receivable into cash during the period.
C) The relationship of cash sales to credit sales.
D) How long it takes to sell inventory on credit.
E) How long it takes to sell inventory on credit and how often a company converts its average accounts receivable into cash during the period.

Question

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Accounts receivable turnover measures how often a company converts its average accounts receivable into cash during the period.

Accounts Receivable Turnover Measures