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:

General Journal

A foundational accounting record where transactions are recorded in chronological order before being posted to specific accounts in the general ledger.

General Journal

An accounting ledger where all types of financial transactions are initially recorded before being posted to specific accounts.

Office Supplies

Various items and materials such as pens, paper, and files, used in offices for the purpose of maintaining smooth business operations.

General Journal

A basic accounting book or document used to record all the day-to-day financial transactions of a business.