Ask Question
BusinessBusiness
31 March, 01:47

The accounts receivable turnover rate: A) Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm. B) Indicates how many times the receivables were converted into cash during the year. C) Is computed by dividing average receivables by sales. D) Indicates the average number of days a business waits to make collection on a credit sale

+3
Answers (1)
  1. 31 March, 05:42
    0
    B) Indicates how many times the receivables were converted into cash during the year.

    Explanation:

    Account receivable Turnover is a ratio which shows that how many times the account receivable is converted into cash in a given period of time. It shows the efficiency of recovery from customer by a company. A company with higher turnover ratio is considered to more profitable and its liquidity is higher. A company with lower Turnover will have low profits and may face liquidity problems.
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “The accounts receivable turnover rate: A) Indicates the proportion of a company's accounts receivable that the independent auditors were ...” 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
You Might be Interested in
This is the forces that combine to make the production of products and services possible. a. product factors b. factors of service c. factors of production d. service factors
Answers (1)
The mars company's new topeka, kansas, manufacturing plant is the first new facility the company has opened in north america in 35 years. it is a (n) :
Answers (1)
Lauren hires Humphrey, a CPA, to audit her financial statements. The engagement letter includes a statement acknowledging that audited financial statements are required to be filed with a regulatory body by October 1.
Answers (1)
Tammi wants to buy a new stereo system. She finds one for $500 at Stereo City. She withdraws $250 from her account at First National Bank and obtains a loan from her parents for the rest of the amount. Then she purchases the stereo.
Answers (1)
Sales for the year = $246,687, net income for the year = $22,965, and average assets during the year = $136,357. return on assets (roa) for the year is: select one: a. 53.8% b. 16.8% c. 9.3% d. there is not enough information to calculate roa. e.
Answers (1)
New Questions in Business
You are managing a project and need to cut the cost of the project. You decide to transfer workers to another job to cut the project's costs. Costs associated with transferring the workers are an example of project indirect costs. O True O False
Answers (1)
K Inc. has provided the following data for the month of May: Inventories: Beginning Ending Work in process $ 17,000 $ 12,000 Finished goods $ 46,000 $ 50,000 Additional information: Direct materials $ 57,000 Direct labor cost $ 87,000 Manufacturing
Answers (1)
Marcy Tucker received the following items this year. Determine to what extent each item is included in her AGI. (Leave no cells blank - be sure to enter "0" wherever required.) A $25,000 cash gift from her parents.
Answers (1)
Analysis of daily output of a factory during a 8-hour shift shows that the hourly number of units y produced after t hours of production is
Answers (1)
In each of the following situations, state whether the bonds will sell at a premium or discount. Required a. Valley issued $300,000 of bonds with a stated interest rate of 7 percent.
Answers (1)
Home » Business » The accounts receivable turnover rate: A) Indicates the proportion of a company's accounts receivable that the independent auditors were unable to confirm. B) Indicates how many times the receivables were converted into cash during the year.
Sign Up Forgot Password?