Accounts receivable turnover measures
A)How often a company converts its average accounts receivable into cash during the period
B)How long it takes to sell inventory on credit
C)The relationship of cash sales to credit sales
D)How long it takes to sell inventory on credit and how often a company converts its average accounts receivable into cash during the period
E)How often a company converts its average accounts receivable into cash during the period and the relationship of cash sales to credit sales

Question

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Accounts receivable turnover measures how often a company converts its average accounts receivable into cash during the period, indicating the effectiveness of a company in collecting payments from its customers.

Accounts Receivable Turnover Measures