The Financial Statements of Danielle Manufacturing Company Report Net Sales

question 227

Multiple Choice

The financial statements of Danielle Manufacturing Company report net sales of $750,000 and accounts receivable of $60,000 and $90,000 at the beginning and end of the year, respectively. What is the accounts receivable turnover for Danielle?

• A) 5 times
• B) 8.3 times
• C) 10 times
• D) 12.5 times

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Definitions:

Total Variable Cost

The sum of all variable expenses that change in proportion with the level of production or business activity.

Static Budget

A fixed budget that does not change or adjust in response to variations in business activity levels or performance.

Employee Salaries And Wages

Financial compensation paid to workers for their labor, including both fixed salaries and hourly wages.

Planning Budget

A budget designed at the beginning of a period, reflecting expected incomes and expenses based on forecasted operations.