If a Company Has an Accounts Receivable Turnover Ratio of 15

Multiple Choice

If a company has an accounts receivable turnover ratio of 15, the company:

A) is converting its accounts receivable to cash 15 times per year.
B) is selling its inventory on 15 days credit terms.
C) is converting its inventory to accounts receivable in 15 days of production.
D) collects it receivables 15 times per year.