Using the Following Data for the Current Year, Determine the Accounts

question 63

Multiple Choice

Using the following data for the current year, determine the accounts receivable turnover. ? $\begin{array}{lr}\text { Net sales on account during the year } & \$ 457,065 \\\text { Cost of merchandise sold during the year } & 461,280 \\\text { Accounts receivable, beginning of year } & 75,290 \\\text { Accounts receivable, end of year } & 26,280 \\\text { Inventory, beginning of year } & 185,000 \\\text { Inventory, end of year } & 169,570\end{array}$

• A) 7
• B) 8
• C) 10
• D) 9

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Definitions:

Create Purchase Order

The process of generating a document that authorizes a purchase transaction for goods or services from a supplier.

Vendor Transaction

A financial exchange or deal occurring between a business and a vendor, often related to the purchase of goods or services.

Receive Inventory

The process of accepting and documenting the arrival of goods or materials into a warehouse or storage facility.

Create Sales Receipt

A document that records a transaction where payment is received at the point of sale.