Accounts receivable turnover ratio measures:
✓ Correct Answer: Option B
AR Turnover = Net Credit Sales / Average Accounts Receivable. Higher ratio indicates more efficient collection. Days Sales Outstanding (DSO) = 365 / AR Turnover.
AR Turnover = Net Credit Sales / Average Accounts Receivable. Higher ratio indicates more efficient collection. Days Sales Outstanding (DSO) = 365 / AR Turnover.