If the Accounts Receivable Turnover Is 42 Days, What Is

question 5

Multiple Choice

If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio (assuming a 365 day year) ?

• A) 7.14 times
• B) 8.69 times
• C) 4.52 times
• D) None of these

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Definitions:

Franchised Stores

Retail outlets that operate under a license from a brand or company, allowing them to sell its products or services.

Covenant

A formal agreement or promise between two or more parties to perform or not perform certain actions.

Gross Sales Revenue

The total income derived from sales of goods or services, before any deductions or expenses are subtracted.

Lease Termination

The process or act of ending a lease agreement before its specified completion date, by either party.