The accounts receivable turnover is computed by dividing

The accounts receivable turnover is computed using the formula below: Net credit sales divided by Average accounts receivable

Explanation: The accounts receivable turnover ratio is a measure used to quantify a company's effectiveness in managing its receivables collections or amount owed by clients. The following steps are involved in calculating the accounts receivables turnover:

High accounts receivable turnover ratio means the company's collection process is highly effective while the low ratio signifies the opposite.

answer; synthetic production system;