The Accounts Receivable Turnover Ratio Is Calculated by Dividing Sales

question 18

True/False

The accounts receivable turnover ratio is calculated by dividing sales by the average value of accounts receivable for a period.

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Definitions:

Yields To Maturity

The total return anticipated on a bond if held until its maturity date, expressed as an annual rate.

Par Value

The nominal or face value of a bond or stock as stated by the issuer, which is often the amount paid out at maturity for bonds.

Increase In Value

The appreciation or upward adjustment in the price or worth of an asset over time.

Maturity

The date on which the principal amount of a bond, loan, or other financial instrument becomes due and is to be paid back.