a
Concept Introduction:
The accounts receivable turnover.
b
Concept Introduction: Accounts receivable turnover is a measure of efficiency because the longer the receivables are outstanding likelihood of collection would be lower. Accounts receivable turnover ascertains how quickly a company has converted its receivable into cash. Higher accounts receivable turnover indicates company collects receivables quickly and the credit policies are very strong.
The comparison of R Company’s receivable turnover with competitor’s receivable turnover of 7.5 times.
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