The receivables turnover ratio gives information on how:
A) how many times inventory is turned over per year.
B) how many times the company sells and collects amounts on account per year.
C) how many customers default per year.
D) the profitability of a company.

Question

Quizplus · Accepted Answer

The receivables turnover ratio measures how many times a company collects, or turns over, its accounts receivable in a year, indicating how efficiently the company is collecting its sales on credit.

The Receivables Turnover Ratio Gives Information on How