The Accounts Receivable Turnover Ratio for a Merchandiser Is 9

question 80

Multiple Choice

The accounts receivable turnover ratio for a merchandiser is 9.6 times.Calculate the days' sales in receivables for the merchandiser.(Round your answer to the nearest day. )

• A)34 days
• B)38 days
• C)29 days
• D)41 days

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Definitions:

Income Statement

a financial statement that shows a company's revenues and expenses, and thus its profit or loss, over a specific period of time.

Percentage of Net Change

A calculation that measures the difference in a financial figure over a period as a percent of its value at the start of the period.

Comparative Income Statement

A financial statement that compares income, expenses, and net profits over different periods to show performance trends.

Net Income

The total earnings or profit of a person or company after all expenses and taxes have been subtracted from gross income.