The Following Information Is Available for Oakland Company The Accounts Receivable Turnover Ratio for 2020 Is
A) 1

question 152

Multiple Choice

The following information is available for Oakland Company: $\begin{array}{lrr}&2020&2019\\\text { Accounts receivable } & \$ 430,000 & \$ 460,000 \\\text { Inventory } & 280,000 & 320,000 \\\text { Net credit sales } & 2,670,000 & 1,600,000 \\\text { Cost of goods sold } & 1,860,000 & 1,060,000 \\\text { Net income } & 300,000 & 170,000\end{array}$ The accounts receivable turnover ratio for 2020 is

• A) 1.4 times.
• B) 6.2 times.
• C) 6.0 times.
• D) 5.8 times.

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Definitions:

Mental Set

A cognitive bias that limits a person to using an approach that has previously worked, even when a different approach might be more beneficial.

Pencil Eraser

A tool made of rubber or similar substances used to remove graphite or ink marks from paper.

Trial And Error

A problem-solving method involving trying various solutions until finding one that works, often learning from mistakes.

Algorithm

A set of rules or procedures followed in problem-solving or calculations.