The Accounts Receivable Turnover Is Computed by Dividing

question 192

Multiple Choice

The accounts receivable turnover is computed by dividing

• A)total sales by average receivables.
• B)total sales by ending receivables.
• C)net credit sales by average receivables.
• D)net credit sales by ending receivables.

---

Definitions:

Seller and Lessor

Terms referring to parties in transactions where goods are sold (seller) or property is leased (lessor) to another party.

Specific Performance

A legal remedy in contract law requiring the breaching party to fulfill the exact terms of the contract, rather than merely compensating the aggrieved party with damages.

Sale of Goods

A transaction in which property consisting of tangible personal items is transferred from seller to buyer for a price.

Reselling the Defective Fixtures

The act of selling goods that have flaws or defects not corrected by the seller, often at a reduced price.