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Accounts Receivable Turnover Rate equals:

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Accounts Receivable Turnover Rate equals: 1.Account Receivable / Monthly Expenditure
2.Account Receivable / Monthly Income
3.Account Receivable plus Monthly Income
4.Account Receivable minus Monthly Income




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    1. Quizzma Team

      The correct answer is: 2. Account Receivable / Monthly Income.

      Explanation: The Accounts Receivable Turnover Rate measures how effectively a company collects its receivables. It is calculated by dividing the total net credit sales (or monthly income) by the average accounts receivable during the period. This ratio indicates how many times a company’s receivables are collected during a period and reflects the efficiency of credit policies and collection practices.

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