The Opening Balance of Accounts Receivable for George Company Was

question 23

Multiple Choice

The opening balance of Accounts Receivable for George Company was $25,000. Net sales (all on account) for the year amounted to $150,000. The Company doesn't offer any cash discount. During the year $130,000 was collected on accounts receivable. Compute accounts receivable turnover ratio for the year.

• A) 4.29 times
• B) 3.71 times
• C) 2.89 times
• D) 7.50 times

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Definitions:

Fuzzy Trace Theory

A cognitive psychology theory suggesting people encode information into two types of representations: verbatim (exact details) and gist (the essence or meaning).

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The process of identifying solutions to specific issues or obstacles in a logical and systematic manner.

Applying Rules

The process of utilizing predetermined guidelines or procedural methods in various situations or contexts.

Using Analogies

The practice of explaining a concept or idea by comparing it to something else that is more familiar or simpler to understand.