39. which of the following is the formula for calculating a companys accounts receivable turnover ratio for…

39. which of the following is the formula for calculating a companys accounts receivable turnover ratio for its recent year? select... net credit sales divided by the average amount of total assets net credit sales divided by the average amount of accounts receivable average amount of accounts receivable divided by net credit sales

39. which of the following is the formula for calculating a companys accounts receivable turnover ratio for its recent year? select... net credit sales divided by the average amount of total assets net credit sales divided by the average amount of accounts receivable average amount of accounts receivable divided by net credit sales

Answer

Explanation:

Step1: Recall accounts - receivable turnover ratio concept

The accounts - receivable turnover ratio measures how efficiently a company collects its credit sales. It shows the number of times a company collects its average accounts - receivable balance in a period.

Step2: Identify the correct formula

The formula for accounts - receivable turnover ratio is $\text{Accounts Receivable Turnover Ratio}=\frac{\text{Net Credit Sales}}{\text{Average Accounts Receivable}}$. This ratio indicates how many times the average accounts - receivable is collected during the year.

Answer:

Net credit sales divided by the average amount of accounts receivable