According to the text, what is the unique reason that the accounts receivable turnover ratio is so widely used in analyzing revenue?
A) significant revenues and receivables will almost always affect this ratio
B) it is easy to compute
C) the data is readily available
D) the accounts receivable turnover ratio is not a widely used ratio in analyzing revenue

Question

Quizplus · Accepted Answer

In many revenue frauds, sales and fictitious receivables are altered. Provided that the accounts receivable turnover ratio is not one, these alterations will almost always change the ratio. While answers b and c may also apply to some extent, there are other ratios that are also easy to compute and for which data is readily available. answer d is obviously incorrect.

According to the Text, What Is the Unique Reason That