A Company Has a Receivables Turnover Ratio of 12

question 34

Multiple Choice

A company has a receivables turnover ratio of 12.The average gross accounts receivable during the period is $360,000.What is the amount of net credit sales for the period?

• A)$ 432,000
• B)$3,000,000
• C)$4,320,000
• D)Cannot be determined from the information given.

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Definitions:

Pair of Equations

Two equations that are considered together, often used to find the solution to a set of variables in math.

Three Figure Accuracy

Refers to rounding calculations to three significant digits.

Pair of Equations

Two mathematical statements set equal to each other, used to find the value of variables.

Unknown Variable

A symbol in mathematics and algebra that represents a number not yet identified but can be solved for in an equation.