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A Company Has an Accounts Receivable Turnover of 10

question 48

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A company has an accounts receivable turnover of 10. The average net accounts receivable during the period are $900,000. What is the amount of net credit sales for the period?


Definitions:

Assets

Resources owned by a company that have economic value and can provide future benefits.

Future Benefits

The projected economic advantages to be received from an investment, often used in evaluating the potential return from capital projects or investments.

Net Income

The amount of earnings remaining after all expenses, including taxes and costs, have been subtracted from total revenue.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period, before any deductions.

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