The efficiency of a business can best be determined by which of the following? A - HSC - SSCE Business Studies - Question 12 - 2017 - Paper 1

The accounts receivable turnover ratio is a key indicator of a business's efficiency in managing its receivables. It measures how effectively a company collects its outstanding credit. The ratio is calculated by dividing net credit sales by the average accounts receivable. A higher ratio indicates that a business is efficient at collecting on its accounts receivable and converting sales into cash promptly. Therefore, amongst the options presented, option D - Accounts receivable turnover ratio best determines the efficiency of a business.