Which Financial Indicator Is Calculated as the Ratio of Annual

question 3

Multiple Choice

Which financial indicator is calculated as the ratio of annual credit sales to accounts receivable?

• A) days of cash
• B) average collection period
• C) accounts receivable turnover
• D) inventory turnover
• E) net working capital turnover

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Definitions:

Online Ordering

The method of purchasing goods or services via the internet.

Omni-channel Strategy

A multi-channel approach to sales that seeks to provide customers with a seamless shopping experience, whether they are shopping online from a mobile device, a laptop, or in a brick-and-mortar store.

Go To Market Strategy

A plan that outlines how a company will introduce its products or services to the market effectively.

Labor-intensive Industries

Sectors or businesses that require a large amount of labor to produce goods or services, as opposed to being heavily automated or equipment-oriented.