A Company Has a Receivables Turnover of 10 Times

question 103

Multiple Choice

A company has a receivables turnover of 10 times. The average netceivables during the period are $400,000. What is the amount of net credit sales for the period?

• A) $40,000
• B) $4,000,000
• C) $480,000
• D) Cannot be determined from the information given

---

Definitions:

Minimum Age

The lowest legal age at which an individual is permitted to engage in a specific activity or employment.

Lag Strategies

Compensation approaches where organizations pay below market rates due to financial constraints but aim to offer other benefits to attract and retain employees.

Labour-Intensive Firms

Companies that require a higher portion of labor input in their operations as compared to capital input, often leading to higher employment levels.

Employee Stability

The extent to which an organization retains its workforce, minimizing turnover and fostering a stable work environment.