The Account Receivable Turnover Is Computed by Taking the Average

question 132

True/False

The account receivable turnover is computed by taking the average net Accounts Receivable and dividing it by the net credit sales.

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Definitions:

Rational Consumer

An assumption in economics that consumers always make logical decisions that provide them with the highest level of personal utility.

Net Borrower

An entity, such as a government or a business, that borrows more money than it lends, resulting in a net outflow of funds.

Interest Rate

The part of a loan that incurs interest for the borrower, generally expressed as an annual percentage of the outstanding loan.

Net Saver

An individual or institution that saves more resources or funds than they spend or consume.