The Accounts Receivable Turnover

question 31

Multiple Choice

The accounts receivable turnover

• A)is computed by dividing net credit sales for the accounting period by the cash realizable value of accounts receivable on the last day of the accounting period.
• B)can be used to compute the average collection period.
• C)is a method of evaluating the solvency of net accounts receivable.
• D)is only important to internal users of accounting information.

---

Definitions:

July

The seventh month of the year in the Gregorian calendar.

Produced Units

refer to the total number of units of product that have been completed within a given period.

Cost Formula

A mathematical equation used to predict the total cost of production or operations, incorporating both fixed and variable costs.

Total Cost

Encompasses all expenses associated with producing or acquiring goods and services, including direct, indirect, fixed, and variable costs.