Dividing Net Sales on Account by the Average Amount of Net

question 80

Multiple Choice

Dividing net sales on account by the average amount of net accounts receivable is the calculation for the

• A) accounts receivable turnover.
• B) working capital turnover.
• C) merchandise inventory turnover.
• D) plant and equipment turnover.

---

Definitions:

IFRS

International Financial Reporting Standards are a set of accounting rules and standards for financial statement preparation, recognized globally.

Noncontrolling Interest

A share in the equity of a subsidiary not held by the parent company, reflecting outside ownership's share of the subsidiaries' net assets.

Book Value

The net value of a company's assets minus its liabilities and preferred stock, representing the shareholders' equity portion of balance sheet.

Minority Active Ownership

A scenario where a minority shareholder takes an active role in the management or decision-making processes of a company.