The Receivables Turnover Ratio Is Calculated As

question 39

Multiple Choice

The receivables turnover ratio is calculated as:

• A) net operating revenue divided by average receivables
• B) net annual sales divided by average receivables
• C) average receivables divided by total assets
• D) average receivables divided by net operating revenue

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Definitions:

Periodic Weighted

A method of inventory valuation that assigns a weighted average cost to items, based on the cost of goods available for sale during a period.

Cost of Goods Sold

The direct costs attributable to the production of the goods sold in a company, including materials and labor.

Average Method

An inventory costing method that prices items based on the average cost of all similar items in inventory.

Cost of Goods Sold

The direct costs tied to the production of products sold by a company, including material and labor expenses.