XYZ's Receivables Turnover Is 4x

question 49

Multiple Choice

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. What was the sales figure for the year assuming all sales are on credit?

• A) $60,000
• B) $6,000,000
• C) $2,400,000
• D) $54,000,000

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Definitions:

Oligochaete

A class of annelids comprising earthworms and related species, characterized by having few setae (bristles) per segment.

Bivalvia

Bivalvia is a class of marine and freshwater mollusks with bodies enclosed by a two-part hinged shell, including clams, oysters, mussels, and scallops.

Two Shells

Refers to bivalves, a class of aquatic mollusks with bodies enclosed by a pair of hinged shells.

Structure Labeled

A term probably meant to describe a diagram or illustration where specific parts have been marked and named to indicate their identity or function.