Accounts Receivable Turnover: The liquidity measures which measures the efficiency is collecting the accounts receivable is called accounts receivable turnover ratio. It is computed by dividing the Net credit sales by the average accounts receivable of the company. To determine : What does a relatively high accounts receivable turnover indicate about a company’s short-term liquidity?

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Chapter 17, Problem 8DQ

To determine

Accounts Receivable Turnover:

The liquidity measures which measures the efficiency is collecting the accounts receivable is called accounts receivable turnover ratio. It is computed by dividing the Net credit sales by the average accounts receivable of the company.

To determine:

What does a relatively high accounts receivable turnover indicate about a company’s short-term liquidity?

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