The receivable turnover amount is needed to calculate the
A) days' sales uncollected.
B) days' inventory on hand.
C) inventory turnover.
D) interest coverage ratio.

Question

Quizplus · Accepted Answer

The receivable turnover amount is the number of times a company's accounts receivable are collected and converted to cash in a year. This figure is needed to calculate the days' sales uncollected, which is the average number of days it takes for a company to collect its receivables. The other options do not require the receivable turnover amount for calculation.

The Receivable Turnover Amount Is Needed to Calculate the