Receivable turnover assesses the efficiency in the management of receivables. It shows how quickly the accounts receivable are converted into cash. Very high accounts receivable turnover suggests that management should consider using less strict credit terms to increase sales. The accounts receivable turnover for the current year for Company S.

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Chapter 7, Problem 3.1AA

To determine

Concept Introduction: Receivable turnover assesses the efficiency in the management of receivables. It shows how quickly the accounts receivable are converted into cash. Very high accounts receivable turnover suggests that management should consider using less strict credit terms to increase sales.

The accounts receivable turnover for the current year for Company S.

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