XYZ's Receivables Turnover Is 4x

question 12

Multiple Choice

XYZ's receivables turnover is 4x. The accounts receivable at year-end are $600,000. The average collection period is 90 days. What was the sales figure for the year assuming all sales are on credit?

• A)$60,000
• B)$6,000,000
• C)$2,400,000
• D)None of the options

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Definitions:

Fast Mapping

The process by which children rapidly learn a new word after a brief encounter.

Logical Reasoning

The process of using rational, systematic steps based on sound mathematical procedures and given statements to arrive at a conclusion.

Overextension

A linguistic phenomenon where a child applies a word in a broader context than is appropriate, indicating the developmental process of language acquisition.

Receptive Vocabularies

The words a person can understand and recognize, even if they cannot actively use them in speech or writing.