Accounts Receivable Turnover Is Calculated As

question 55

Multiple Choice

Accounts receivable turnover is calculated as:

• A)total net credit sales divided by average net accounts receivable.
• B)average net accounts receivable divided by 365 days.
• C)total cost of goods sold divided by 365 days.
• D)total net credit sales divided by cost of goods sold.

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Definitions:

Monopolistic Competitor

A type of market structure characterized by many firms selling products that are similar but not identical, allowing for some degree of market power.

Monopolistically Competitive

Refers to a market setup where multiple companies offer products that are closely related but not the same, granting them limited market influence.

Purely Competitive

A market structure characterized by many buyers and sellers, with no single participant able to influence the market price, leading to products that are very similar.

Maximize Profits

The aim of businesses to increase their net earnings and shareholder value to the highest possible level through strategic planning and efficient operations.