The Accounts Receivable Turnover Is Computed by Dividing Total Sales

question 172

True/False

The accounts receivable turnover is computed by dividing total sales by the average net receivables during the year.

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Definitions:

Initial Investment

The amount of money invested at the start of a project or business venture to get it off the ground.

Positive Future Cash Flows

The expectation or projection of an increase in the amount of money flowing into a company over a period of time, typically resulting from operations, investments, or financing activities.

Capital Budgeting Technique

A process of evaluating and comparing the potential expenditures or investments which are significant in amount, to determine their worthiness for funding.

Present Valued Dollar

The current value of a future sum of money or stream of cash flows given a specified rate of return.