In Calculating a Company's Accounts Receivable Turnover Ratio, Which of the Following

question 69

Multiple Choice

In calculating a company's accounts receivable turnover ratio, which of the following sets of factors would be used?

• A) Net income and average accounts receivable
• B) Total assets and average accounts receivable
• C) Total accounts receivable and sales revenue
• D) Sales revenue and average accounts receivable

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Definitions:

BBB

A bond credit rating given to a medium credit quality debt instrument, indicating moderate risk.

Primary Market Transaction

Deals with the issuance of new securities directly from the issuer to investors.

Secondary Market Transaction

The buying and selling of previously issued securities, such as stocks and bonds, between investors, rather than directly from issuing companies.

Bond Issue

The process of issuing new bonds by a corporation or government to raise capital, involving the creation of new debt securities to be sold to investors.