The account receivable turnover measures:
A) How long it takes to sell accounts receivable to a factor.
B) How long it takes to sell merchandise inventory.
C) The relation of cash sales to credit sales.
D) How often, on average, receivables are received and collected during the period.
E) All of the options are correct.

Question

Quizplus · Accepted Answer

The account receivable turnover measures how often, on average, receivables are received and collected during the period. It is calculated by dividing net credit sales by the average accounts receivable balance during the period.

The Account Receivable Turnover Measures