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:

System of Linear Equations

A set of equations with multiple variables that are linear, where the goal is to find values for the variables that satisfy all equations simultaneously.

Cramer's Rule

A mathematical theorem used to solve systems of linear equations with the same number of equations as unknowns, using determinants.

System of Linear Equations

A group of one or more linear equations that share a common set of variables.

Row-echelon Form

A form of a matrix where all nonzero rows are above any rows of all zeroes, and each leading entry of a row is to the right of the leading entry of the previous row.