Accounts Receivable Turnover Measures

Multiple Choice

Accounts receivable turnover measures

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