The accounts receivable turnover ratio indicates whether a company could pay all its current liabilities if they were become due immediately.

Name: The accounts receivable turnover ratio indicates whether a company could pay all its current liabilities if they were become due immediately.
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The accounts receivable turnover ratio measures how quickly a company collects its outstanding receivables, and is not directly related to its ability to pay current liabilities.

The Accounts Receivable Turnover Ratio Indicates Whether a Company Could