Quickcom Has Net Sales of $135,000 and Average Accounts Receivable

question 164

Multiple Choice

Quickcom has net sales of $135,000 and average accounts receivable of $67,000. What is the accounts receivable turnover for the period?

• A) 1,825.
• B) 2.
• C) 73.
• D) 20.
• E) 25.

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Definitions:

Equipment Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the wear and tear, or obsolescence of physical equipment.

Machining Activity

The process of removing material from a piece of work through methods like cutting, drilling, or milling.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to related products and services based on their usage of resources.

Overhead Cost

Expenses associated with the operation of a business that are not directly tied to a specific product or service.