Which ratio measures the number of times a firm lends money to customers,collects that money,and relends it within a year?
A)Total asset turnover
B)Days' sales in receivables
C)Total debt ratio
D)Receivables turnover
E)Quick ratio

Question

Quizplus · Accepted Answer

The ratio that measures the number of times a firm lends money to customers, collects that money, and relends it within a year is the Receivables Turnover ratio. It calculates how efficiently a company manages its sales on credit by dividing net credit sales by the average accounts receivable balance during a particular period.

Which Ratio Measures the Number of Times a Firm Lends