The Receivables Turnover Ratio

question 50

Multiple Choice

The receivables turnover ratio:

• A)is calculated as the average number of days from the time a sale is made on account to the time cash is collected.
• B)is calculated as the average number of days from the time a sale is made on account to the time payment is due.
• C)measures how many times a year receivables go uncollected.
• D)measures how many times,on average,the process of selling and collecting is repeated during the period.

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Definitions:

MgO

Magnesium oxide, a white hygroscopic solid mineral that is used as a refractory material, in medication, and as a magnesium source in animal feeds.

Oxidation Number

A concept in chemistry that represents the degree of oxidation of an atom in a chemical compound, indicating the number of electrons lost or gained by an atom.

Oxidation Number

A number assigned to an atom in a chemical compound that represents the number of electrons lost or gained by the atom.

Carbon

A chemical element with symbol C and atomic number 6, fundamental to life and used in countless industrial applications.