If the Accounts Receivable Turnover Is 42 Days, What Is

question 5

Multiple Choice

If the accounts receivable turnover is 42 days, what is the account receivable turnover ratio (assuming a 365 day year) ?

• A) 7.14 times
• B) 8.69 times
• C) 4.52 times
• D) None of these

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Definitions:

Adjusted Trial Balance

A financial statement listing all accounts and their balances after adjusting entries have been made, ensuring the total debits equal total credits.

Close Revenue

The process of transferring the balances of all revenue accounts to the income summary account at the end of an accounting period.

Expense Accounts

Accounts used in accounting to record all expenses a company incurs during a specific period.

Adjusted Trial Balance

An adjusted trial balance is a listing of all company accounts that will appear in the financial statements after adjusting entries have been made for the accounting period.