If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio (assuming a 365 day year)?
A) 7.14 times
B) 8.69 times
C) 4.52 times
D) None of these

Question

Quizplus · Accepted Answer

The accounts receivable turnover ratio is calculated by dividing 365 days by the accounts receivable turnover. Therefore, the accounts receivable turnover ratio would be 365/42 = 8.69 times. The correct answer is B.

If the Accounts Receivable Turnover Is 42 Days, What Is