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:

Federal Court

A court established by the federal government of a country that has jurisdiction over questions of federal law and constitutional matters.

Gilbert Stuart

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An American painter, soldier, and naturalist known for his portraits of leading figures of the American Revolution and the early United States.

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