The Accounts Receivable Turnover Ratio Is Computed by Dividing

question 100

Multiple Choice

The accounts receivable turnover ratio is computed by dividing

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

---

Definitions:

Social Laws

Norms and rules that govern behavior within a society, often formalized into legal codes and regulations.

Human Behavior

The range of behaviors exhibited by humans and which are influenced by culture, attitudes, emotions, values, ethics, authority, rapport, hypnosis, persuasion, coercion, and/or genetics.

Positivism

A system of thought that regards scientific observation to be the highest form of knowledge.

Scientific Observation

The process of carefully watching and analyzing phenomena in a systematic way to gain empirical knowledge.