Two ratios that provide insight on the relationship between credit sales and receivables are:
A)Current ratio and inventory turnover ratio.
B)Accounts receivable turnover and average days to collect receivables.
C)Average days to collect receivables and asset turnover.
D)Accounts receivable turnover and current ratio.

Question

Quizplus · Accepted Answer

Two relationships are often examined to assess a company's collection record: accounts receivable turnover and average days to collect receivables (average collection period).

Two Ratios That Provide Insight on the Relationship Between Credit