The Following Balance Sheet Information Was Provided by Owen Company

question 20

Multiple Choice

The following balance sheet information was provided by Owen Company:
Assuming that net credit sales totaled $300,000 and cost of goods sold totaled $175,000,what is the company's most recent accounts receivable turnover?

• A)15 times
• B)21 times
• C)24 times
• D)25 times

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Definitions:

Merger

In corporation law, traditionally, a transaction by which one corporation acquires another corporation, with the acquiring corporation being owned by the shareholders of both corporations and the acquired corporation going out of existence. Today, loosely applied to any negotiated acquisition of one corporation by another.

Remains Liable

Continues to be legally responsible or obligated.

Debt

An amount of money that is owed or due to be paid, typically as a result of borrowing or a financial agreement.

Minutes

The official written records of the discussions and decisions made during formal meetings.