Fracus Company Had $100,000 in Sales on Account Last Year

question 46

Multiple Choice

Fracus Company had $100,000 in sales on account last year.The beginning accounts receivablebalance was $14,000,and the ending accounts receivable balance was $16,000.The company's accounts receivable turnover was closest to which of the following?

• A) 3.33 times.
• B) 6.25 times.
• C) 6.67 times.
• D) 7.14 times.

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Definitions:

Direct Costs

Costs that can be directly traced to the production of specific goods or services, such as raw materials and labor directly involved in manufacturing.

Hand-Painted Clay Figurines

Decorative or collectible items made of clay and finished with hand-applied paint details, often representing characters or scenes.

Fixed Manufacturing Cost

A type of cost that does not change with the level of production output, including costs like rent, salaries, and insurance.

Relevant Range

The span of activity within which certain cost behaviors and assumptions, such as fixed costs and variable rates, are expected to remain valid.