Final answer:
The accounts receivable turnover for year 8 measures the efficiency of a company in collecting payments from its customers.
Step-by-step explanation:
The accounts receivable turnover for year 8 is a financial metric that measures the efficiency of a company in collecting payments from its customers. It is calculated by dividing the net credit sales for the year by the average accounts receivable balance.
Accounts Receivable Turnover = Net Credit Sales / Average Accounts Receivable
For example, if a company had net credit sales of $500,000 and an average accounts receivable balance of $100,000, the accounts receivable turnover would be 5. This means that the company collects its accounts receivable balance 5 times during the year.