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

Question

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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 average accounts receivable.

The Account Receivable Turnover Measures