The Receivables Turnover Ratio Is Calculated by Dividing

question 83

Multiple Choice

The receivables turnover ratio is calculated by dividing

• A)total sales by average gross accounts receivable.
• B)total sales by average net accounts receivable.
• C)net credit sales by average gross accounts receivable.
• D)net credit sales by ending average net accounts receivable.

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Definitions:

Capital Account

Represents the net change in physical or financial asset ownership for a nation and includes investments and loans into or out of the country.