Magneto Company Had Net Credit Sales During the Year of $1,350,000

question 38

Multiple Choice

Magneto Company had net credit sales during the year of $1,350,000 and cost of goods sold of $810,000. The balance in accounts receivable at the beginning of the year was $180,000, and the end of the year it was $120,000. What was the accounts receivable turnover?

• A) 5.6
• B) 7.5
• C) 9.0
• D) 11.3

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Definitions:

15 Percent

A figure that typically represents a portion, fraction, or rate equating to fifteen out of every hundred or 15% of a total.

Meta-Communication

Communication about communication, which includes the underlying messages, context, and cues beyond the literal meaning of words.

Hidden Assumptions

Hidden assumptions are unspoken or unconscious beliefs that underpin our thoughts, decisions, and actions, affecting our perceptions and understandings without us being aware.

Open Messages

Communication that is direct, clear, and easy to interpret.