CFA Practice Question

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CFA Practice Question

Receivable turnover measures ______.

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
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