4.4 are going to be the period for accounts receivable turnover .
<h3>Evaluating :</h3>
Account receivable turnover = income ÷ average account receivable
$726,000 ÷ $165,000
= 4.4
<h3>How do I determine the turnover of accounts receivable?</h3>
Net sales are divided by the average amount of accounts receivable to arrive at the AR Turnover Ratio.
Sales on credit are wont to determine net sales.
- sales allowances - sales returns
<h3>What does a turnover ratio for assets mean?</h3>
The efficiency with which a business is in a position to collect on its receivables or the credit it gives to clients is measured by the receivables turnover ratio.
The ratio also counts the amount of times a company's receivables are turned into cash during a specific time period.
<h3>What is measured by the turnover of accounts receivable?</h3>
Receivables Accounts Indicator of how frequently receivables are received and paid throughout the period; calculated by dividing income by average accounts receivable. Turnover measure of both the standard and liquidity of receivables.
Learn more about Account receivable :
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