The Turnover of Accounts Receivable Can Be Calculated by Dividing

question 80

True/False

The turnover of accounts receivable can be calculated by dividing annual sales by accounts receivable.

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Definitions:

Conforming Goods

Products that meet the specifications and standards outlined in a purchase contract including quality, quantity, and other clearly defined characteristics.

Uniform Commercial Code

A set of laws that provide a standardized and comprehensive framework for the regulation of commercial transactions across the United States.

Cure

A breaching party’s right to provide conforming goods when nonconforming goods were initially delivered; subject to a reasonable time test.

Perfect Tender Rule

A legal principle in commercial law that sellers must deliver goods that exactly meet the terms of the contract without any deviation.