Accounts receivable turnover equals:
A)days' sales in receivables.
B)average collection period.
C)average net accounts receivable.
D)net credit sales divided by average net accounts receivable.

Question

Quizplus · Accepted Answer

Accounts receivable turnover is calculated by dividing net credit sales by the average net accounts receivable. This ratio indicates how many times a company collects its average accounts receivable balance during a given period, typically a year.

Accounts Receivable Turnover Equals