The Accounts Receivable Turnover Ratio Is Computed by Dividing __________

question 173

Short Answer

The accounts receivable turnover ratio is computed by dividing __________ by average accounts receivable.

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Definitions:

Rule Of Thumb

A general principle or guideline that is not strictly accurate or reliable for every situation but is used because of its practicality.

Standard Cost

Predetermined costs for manufacturing or service processes, used as benchmarks for performance evaluation.

Variance Investigation

The process of examining the reasons behind differences between budgeted and actual figures in finance and accounting.

Direct Material Quantity Variance

The difference between the budgeted amount of materials needed for production and the actual amount used, valued at the standard cost.