The Accounts Receivable Turnover Ratio Is Computed by Dividing

question 100

Multiple Choice

The accounts receivable turnover ratio is computed by dividing

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

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Definitions:

Buyer

An individual or entity that purchases goods or services for personal use or consumption.

Tax

Tax is a compulsory financial charge levied by a government on individuals, corporations, or transactions to fund public expenditures.

Higher Prices

The result of increased costs, supply shortages, or higher demand for products or services, leading consumers to pay more.

Gasoline Tax

A tax imposed on the sale of gasoline, typically used by governments to fund transportation projects and other public goods.