Accounts Receivable Turnover Is Calculated As

question 76

Multiple Choice

Accounts receivable turnover is calculated as:

• A)average net accounts receivable / 365 days.
• B)total cost of goods sold / 365 days.
• C)total net credit sales / average net accounts receivable.
• D)total net credit sales / cost of goods sold.

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Definitions:

Cash Flows

The aggregate volume of funds moving into and out of a corporation, impacting its ability to cover short-term obligations.

Income Statement

A financial statement that shows the company's revenues and expenses over a specific period, indicating how the revenues are transformed into net income or loss.

Net Income

The total profit of a company after all expenses, including taxes, have been deducted from total revenue.

Common Stock

Common stock represents ownership shares in a corporation, entitling holders to vote on company matters and potentially receive dividends.