The Account Receivable Turnover Measures

question 12

Multiple Choice

The account receivable turnover measures:

• A)How long it takes to sell accounts receivable to a factor.
• B)How often,on average,receivables are received and collected during the period.
• C)The relation of cash sales to credit sales.
• D)How long it takes to sell merchandise inventory.
• E)All of the options are correct.

---

Definitions:

Quantity of Labor

The total number of labor hours employed or the total number of workers employed in the production of goods and services.

Excise Tax

A tax levied on specific goods, services, or transactions, often imposed on alcohol, tobacco, and gasoline.

Supply Curve

A graphical representation showing the relationship between the price of a good and the amount of it that suppliers are willing to produce and sell.

Perfectly Inelastic

A scenario where the demand for a good does not change in response to changes in price, represented by a vertical demand curve.