Which Statement Concerning the Receivables Turnover Ratio Is True

Multiple Choice

Which statement concerning the receivables turnover ratio is true?

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