A Company Had an Accounts Receivable Turnover Ratio of 8

question 102

Multiple Choice

A company had an accounts receivable turnover ratio of 8 and net sales of $600,000 for a given period.What was the average accounts receivable amount for this period?

• A)$4,800,000.
• B)$2,919.99.
• C)$205.48.
• D)$75,000.
• E)Average accounts receivable cannot be determined from this information.

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Definitions:

Depreciation

The process of allocating the cost of a tangible asset over its useful life, reflecting wear and tear, or obsolescence.

Financial Accounting

The field of accounting focused on the preparation of financial statements for external stakeholders, such as investors, creditors, and regulatory agencies.

Employee Downtime

Periods when employees are not engaged in productive work due to various factors such as system failures or maintenance.

Performance Report

A document or record that evaluates the performance of a particular aspect of a company, often comparing actual results to planned or expected outcomes.