- CFA Exams
- CFA Level I Exam
- Topic 4. Financial Statement Analysis
- Learning Module 11. Financial Analysis Techniques
- Subject 2. Activity Ratios
CFA Practice Question
Receivable turnover measures ______.
B. the amount of the average receivable account
C. how many times, on average, the accounts receivable were converted into cash during the period
A. the time it takes to collect an average receivable
B. the amount of the average receivable account
C. how many times, on average, the accounts receivable were converted into cash during the period
Correct Answer: C
Receivable turnover is equal to net sales divided by average accounts receivable.
User Contributed Comments 2
| User | Comment |
|---|---|
| johntan1979 | A is DSO or DAR |
| khalifa92 | during the period = turn ove |