What is the ratio of net annual credit sales to average accounts receivable (which measures the speed with which customers pay what they owe to the company)?
A) sales liquidity ratio
B) sales to cash ratio
C) bad debt expenses ratio
D) accounts receivable turnover ratio

Question

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The ratio of net annual credit sales to average accounts receivable is commonly known as the accounts receivable turnover ratio. This ratio measures the speed with which customers pay what they owe to the company. It is a key metric for assessing a company's credit and collection policies.

What Is the Ratio of Net Annual Credit Sales to Average