Ask Question
11 February, 09:19

The accounts receivable turnover measures a. the number of days of accounts receivable outstanding b. the fair market value of accounts receivable c. the efficiency of the accounts payable function d. how frequently during the year the accounts receivable are converted to cash

+5
Answers (1)
  1. 11 February, 10:07
    0
    d. how frequently during the year the accounts receivable are converted to cash

    Explanation:

    The formula to compute the account receivable turnover is shown below:

    Account receivable turnover ratio = Net credit sales : Average accounts receivable

    where,

    The Average accounts receivable would be

    = (Accounts receivable, beginning of year + Accounts receivable, end of year) : 2

    This ratio derives that how much frequently is there for converting the account receivable to cash

    hence, the correct option is d.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The accounts receivable turnover measures a. the number of days of accounts receivable outstanding b. the fair market value of accounts ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers