LKN Company Had Net Credit Sales of $4,290,000 and Cost

question 25

Multiple Choice

LKN Company had net credit sales of $4,290,000 and cost of goods sold of $3,000,000 for the year. The Accounts Receivable balances at the beginning and end of the year were $600,000 and $700,000, respectively. The accounts receivable turnover ratio was

• A) 7.2 times.
• B) 6.6 times.
• C) 3.3 times.
• D) 6.1 times.

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Definitions:

Small Intestine

A part of the digestive system where most of the digestion and absorption of nutrients takes place.

Nutrients

Substances obtained from food that are essential for the growth, repair, and maintenance of a healthy body, including vitamins, minerals, proteins, fats, and carbohydrates.

Food Deprivation

The condition of having insufficient food to meet basic nutritional needs, leading to hunger or starvation.

Salivary Glands

Glands that furnish moisture that helps in tasting and digesting food.