The Statement Concerning the Receivables Turnover Ratio That Is True

Multiple Choice

The statement concerning the receivables turnover ratio that is true is:

A) It is calculated as total sales divided by average receivables
B) A change in the ratio from 2.8 times to 3.1 times is an unfavourable change
C) It is a measure of how many times the average receivables balance is converted into cash in a year
D) If the receivables turnover ratio is divided into 365 this gives the average number of days it takes to sell receivables